ABS

  • US ABS still quiet, despite auto injection

    Secondary US ABS activity was once again fairly light yesterday, with auto paper dominating the session. BWIC volume reached around US$74m, with SCI's PriceABS data listing 18 line items for the sector.

    Among the auto names circulating yesterday were several Avis Budget Rental Car Funding tranches, including the AESOP 2011-1A A bond, which was talked in the 20s. .......

    Market Reports 9 May 2013

  • Cat bonds set for record issuance

    US$520m of catastrophe bond issuance was offset by US$352.5m of maturities in 1Q13, resulting in an increase of US$4167.5m in risk capital outstanding, according to GC Securities. The firm expects the market this year to approach, if not exceed, the record for annual issuance of US$7bn set in 2007.

    This forecast is dependent on cat bond market pricing remaining stable .......

    News Round-up 9 May 2013

  • Euro SME deals remain 'uneconomic'

    The market for European SME securitisations remains shut, despite significant spread contraction, Fitch reports. The agency notes that this is mainly because securitisations of loans to SMEs, if placed with investors, are uneconomic from the lenders' perspective.

    "The prevailing view is that SME securitisation - due to the lack of liquidity in the market, as well as the perceived additional .......

    News Round-up 7 May 2013

  • Solid performance for MM tranches

    Money market (MM) tranches that are part of global structured finance transactions performed well throughout the crisis, according to Fitch. This is reflected in the solid ratings performance of these tranches, as well as their strong repayment trends, the agency reports.

    MM tranches include those where the term of assets and liabilities is matched (for example, ABS) and those where .......

    News Round-up 7 May 2013

  • Strong card ABS performance continues

    Positive macro news and improving consumer health pushed US credit card ABS performance to levels not seen in more than two decades, according to the latest monthly index results from Fitch. Credit card ABS performance once again hit or held near-record levels on most fronts.

    Prime 60+ day delinquencies touched record lows, while retail late-pays approached record lows. Excess spread .......

    News Round-up 3 May 2013

  • ECB boost for SME ABS

    The ECB has begun consultations with the European Council and EIB in order to promote a functioning market for SME ABS. While the move has been welcomed as a step in the right direction, market participants are not expecting any significant progress in the near future.

    ABS analysts at JPMorgan highlight the cautious tone taken by the ECB. With consultations .......

    News 3 May 2013

  • ABS, RMBS sales trio recruited

    Pierpont Securities has hired John Duffy, John Ou and Brian Hartmann to its sales team. The three help build out the firm's structured finance capabilities.

    Duffy specialises in mortgages and has previously worked at Deutsche Bank, JPMorgan and DLJ Securities. Ou joins the structured finance sales desk from Brean Capital and will cover RMBS and ABS, reporting to md Kim .......

    Job Swaps 1 May 2013

  • Scrutiny required for rehab loans

    US FFELP student loan ABS deals with larger concentrations of rehabilitation loans warrant additional scrutiny, according to Fitch. With a trend towards larger concentrations of rehab loans in FFELP ABS over the past couple of years, the agency has compared performance of rehab loan trusts to non-rehab trusts to confirm whether specific cashflow assumptions are consistent with actual performance.

    "Compared .......

    News Round-up 1 May 2013

  • Solid floorplan performance predicted

    Solid asset performance and higher auto sales will likely increase demand for wholesale dealer lending and drive issuance of new US dealer floorplan ABS, Fitch suggests. But the agency points out that the sector is not without potential potholes.

    US auto dealerships are in solid shape through 1Q13, with soaring profit levels, while expenses are being held in check. However, .......

    News Round-up 1 May 2013

  • Strong seasonal results for auto ABS

    US auto ABS posted stellar seasonal results last month, according to Fitch. Both losses and delinquencies declined across prime and subprime auto ABS, even as used vehicle values softened, and are expected to moderate further this year.

    The unemployment rate dropped to a three-year low of 7.6%, the lowest level since hitting a high of 10% in October 2009. The .......

    News Round-up 30 April 2013

  • Recent vintages seen in ABS session

    US ABS BWIC volumes totalled around US$93m yesterday, with secondary flows remaining light in the run-up to month-end. SCI's PriceABS data shows a number of recently issued bonds among those out for the bid.

    The most recently issued deal to see a tranche show up on yesterday's bid-lists is Hardee's Funding/Carl's Jr Funding Series 2013-1. A US$5m slice .......

    Market Reports 30 April 2013

  • SIV suit settled

    Moody's, Morgan Stanley and S&P have settled out of court with Abu Dhabi Commercial Bank (ADCB) in connection with the Cheyne Finance SIV fraud trial (SCI 12 April). ADCB filed suit in 2008 in the New York district courts to recover its original investment of US$10m in Cheyne notes.

    .......

    Job Swaps 30 April 2013

  • Royal Park assets offloaded

    The Belgian government has sold the Royal Park Investments (RPI) SPV to Lone Star and Credit Suisse for €6.7bn via a block sale. Fortis Bank's structured credit assets were transferred to the SPV, following the rescue of the bank in November 2008 (SCI 4 February 2009).

    The Belgian state - along with Ageas (formerly Fortis Holding) - is set to .......

    News Round-up 29 April 2013

  • Solar securitisation risks examined

    Moody's observes in its latest ABS Spotlight publication that four major credit risks arise in the securitisation of residential solar contracts. These risks are heightened by the contracts' long tenor.

    Residential solar contracts, under which customers pay a monthly fee in exchange for the electricity from the solar power system a solar company installs on their rooftops, typically last for .......

    News Round-up 26 April 2013

  • CMBS investors broadening horizons

    It has been a quieter week for European CMBS. Primary issuance still seems a fair distance away and secondary volumes have been down, although investors appear to be becoming more flexible in the paper they will buy.

    "It has been quite a funny week because - from having a good amount of CMBS last week, but not much ABS - .......

    Market Reports 26 April 2013

  • Private, FFELP SLABS performance compared

    US private student loans originated after 2008 are currently defaulting at a lower rate than FFELP student loans, according to Moody's in its latest ABS Spotlight publication. Because of the marked improvement in the credit profile of newly originated private loans in recent years, this gap in performance is expected to continue widening. Lenders have tightened credit underwriting for private .......

    News Round-up 25 April 2013

  • Early amortisation likely for Canadian card ABS

    The impact of a rare instance of credit card ABS early amortisation in Canada is credit neutral for the SCORE Trust securitisation for two reasons, Moody's notes in its latest ABS Spotlight publication. First, these notes will enter early amortisation because of unique structural provisions that result in a breach of an excess spread trigger during the accumulation period, rather .......

    News Round-up 25 April 2013

  • Instalment loan ABS under pressure

    The Japanese Consumer's Class Action bill - which was last week sent to the ordinary session of the Diet for approval - is credit negative for instalment sales loan ABS in the country, according to Moody's in its latest Credit Outlook. The agency notes that if the securitised pool includes receivables originated through merchants involved in a class action for .......

    News Round-up 25 April 2013

  • ABCP programmes restructured

    Deutsche Bank has implemented a complete overhaul of the programme documents for its Rhein-main Securitisation Limited (RMSL) and Rheingold Securitisation Limited (RGSL) ABCP conduits. In conjunction with the programme amendments, any maturing ABCP issued out of RGSL will be refinanced by RMSL or repaid through drawings under the liquidity facilities. No further ABCP can be issued out of RGSL going .......

    News Round-up 25 April 2013

  • Allocations cap weighs on FFELP SLABS

    Fitch believes that it is possible for an obscure aspect of the Budget Control Act of 2011 to affect FFELP student loan ABS deals. Smaller not-for-profit servicers of the Federal Direct Loan Program (FDLP) are likely to be pressured by a cap on the allocations of borrower accounts to existing not-for-profit (NFP) servicers in 2013, the agency explains.

    They will .......

    News Round-up 25 April 2013

  • CRA roundtable agenda announced

    The US SEC has announced the agenda for its credit ratings roundtable, which will be held on 14 May. The roundtable will consist of three panels.

    The first panel will discuss the potential creation of a credit rating assignment system for ABS. The second will discuss the effectiveness of the SEC's current system to encourage unsolicited ratings of ABS, while .......

    News Round-up 24 April 2013
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