ABS

  • 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

  • Regional variation seen in Euro auto ABS

    Strong collateral performance over the financial crisis and recent economic downturn continue to underpin investor demand for European auto ABS, according to S&P. Together with rapid structural amortisation, this means there have been relatively few auto ABS downgrades in recent years and defaults have remained scarce.

    "Following a sharp reduction in securitisation issuance in 2008 and 2009, several European banks .......

    News Round-up 23 April 2013

  • Pace of improvement slowing for card ABS

    US credit card ABS charge-offs and delinquencies fell once again last quarter. However, the pace of improvement is noticeably slowing, according to Fitch's latest index results for the sector.

    Charge-offs came in at 3.91% during the March distribution period and are still tracking near record lows. Elsewhere, delinquencies managed to shave off a few more basis points, averaging 1.63% and breaking .......

    News Round-up 23 April 2013

  • UK-linked deals downgraded

    Fitch has downgraded 32 tranches and affirmed three tranches of 11 structured finance transactions that are credit-linked or have significant credit exposure to the UK sovereign. The agency has also maintained three tranches of Finance for Residential Social Housing (Fresh) on rating watch negative (RWN). The rating actions follow the downgrade of the UK's long-term issuer default rating (IDR) to .......

    News Round-up 23 April 2013

  • Reforms to hit pubco bonds

    The UK government has unveiled its proposals to regulate the tied tenanted pubco sector with a new statutory Code of Practice, backed by an independent adjudicator. The reforms could transfer an estimated £4,250 per pub in profits from the owners of tied pubs to the tenant in the median case, according to ABS analysts at Barclays Capital.

    "These proposals - .......

    News Round-up 22 April 2013

  • Stress index enhanced

    The Cleveland Financial Stress Index (CFSI) - a tool that allows policymakers and financial analysts to monitor the condition of financial markets - now offers daily updates and tracks stress in the real estate and securitisation markets. In addition, the index and its components are now updated on daily basis (instead of on a monthly basis), enhancing the ability to .......

    News Round-up 22 April 2013

  • ABS mix makes for active session

    US ABS BWIC volumes reached US$181m yesterday, with auto and student loan paper accounting for most of the supply. SCI's PriceABS data also displays some credit card tranches circulating during the session.

    "Blocks of 2011 vintage senior auto loan bonds, along with a mix of senior and mezzanine student loans, have pushed BWIC volume higher," Interactive Data notes.

    Market Reports 19 April 2013

  • Manager adds two in Europe

    CVC Credit Partners has appointed Stuart Levett as md focused on European trading activity and Julia Agafonova as director of fund administration and head of European operations. They will both be based in London.

    Levett specialises in sourcing, managing and trading performing, stressed and distressed credit assets. He has previously worked at UBS, Cantor Fitzgerald and Credit Suisse.

    Agafonova has .......

    Job Swaps 19 April 2013
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