ABS

  • Strong demand for Euro auto paper

    A flurry of European ABS activity emerged yesterday, with auto paper helping to drive the secondary market. SCI's PriceABS data shows that a number of names were covered above par during the session, with this proving true even beyond the auto space.

    The highest cover recorded yesterday - at 100.98 - was for the GLDR 2010-A A tranche, .......

    Market Reports 7 February 2013

  • Links downgraded

    Moody's has downgraded from Aa2 to Aa3 the Euro and US MTN programmes of Links Finance. The ratings remain under review for possible downgrade.

    The move is the result of the downgrade to Aa3 of Bank of Montreal, which sponsors the SIV. There is a direct linkage between the ratings of Links Finance and BMO due to the sponsor's commitment .......

    News Round-up 5 February 2013

  • Stable performance predicted for utility ABS

    Fitch expects the stable performance of Fitch-rated US utility tariff ABS to continue, despite sector-specific and broader macroeconomic challenges.

    "Energy consumption may begin to decline as residential energy efficiency programmes mature, thus dragging down overall electric sales," comments Fitch senior director Du Trieu.

    The tepid economic recovery may also be a factor, more so amid the resolution of the US .......

    News Round-up 4 February 2013

  • Euro price gains slowing

    European BWIC volumes for the first month of 2013 stand at €2.4bn, according to Deutsche Bank figures. This level is some 122% higher than for the same period last year, with CLOs (accounting for €600m of the volume) and CMBS (€438m) featuring heavily.

    So far this paper has been readily absorbed by the market, but analysts at the bank note .......

    Market Reports 1 February 2013

  • Waiting for a spark

    Structured finance recruitment prospects limited without macro change

    The new year has dawned with the structured finance recruitment outlook as uncertain as it was for much of 2012. The environment could begin to change now that January is almost over, but one headhunter warns that it may take a long time for hiring levels to increase dramatically.

    "A lot of people are not looking at recruitment until the .......

    News Analysis 31 January 2013

  • Mixed outlook for global ABCP

    The credit quality of US and Canadian ABCP will respectively be stable and strong in 2013, according to Moody's. At the same time, bank and sovereign risk will remain a critical issue for European ABCP programmes. Regulatory uncertainty is an issue in both the US and Europe.

    In Moody's view, the credit outlook for ABCP in the US is stable, .......

    News Round-up 31 January 2013

  • Agency RMBS under pressure?

    ABS analysts at Bank of America Merrill Lynch suggest that a rotation out of bonds into equities will likely be the dominant story for 2013, as markets in the US transition from deflation and deleveraging to a normalisation of growth, rates and risk appetite. Moreover, the macro theme is expected to become less dominant, meaning that security selection should trump .......

    News 30 January 2013

  • Euro ABS investors take stock

    After a strong start to the year, the European ABS market has quietened down over the last week or so. The secondary market remains limited to BWIC activity, while the primary market has seen a couple of deals announced.

    "A couple of auto deals have been announced in the primary market, with the Red & Black TME Germany 1 transaction .......

    Market Reports 29 January 2013

  • True-ups bolster utility ABS

    The true-up mechanism structured in each utility tariff (UT) ABS transaction within Fitch's rated portfolio provides adequate credit support to maintain triple-A ratings following Hurricane Sandy, the agency reports. While the electricity supply was renewed quickly for the majority of buildings in lower Manhattan and the New Jersey shore area, some are still without power as utility systems are upgraded .......

    News Round-up 29 January 2013

  • Agreement enhances analytics offering

    Interactive Data has integrated Intex Solutions' structured finance cashflows and related data into its BondEdge Solutions platform. BondEdge clients can now access the Intex deal library API as an optional service to drive analytical calculations, reporting, simulations and cashflow projections. The move follows Interactive Data's agreement with Intex to provide independent evaluated prices on a universe of global RMBS, ABS .......

    News Round-up 29 January 2013

  • Card delinquencies hit all-time low

    The US credit card delinquency rate declined to an all-time low of 2.28% in December, 9bp lower than in November, according to Moody's Credit Card Indices. The early-stage component of delinquencies also fell to an all-time low of 0.63%, 6bp below its November level of 0.69%.

    "The rate of improvement in both metrics had slowed in the several months prior .......

    News Round-up 28 January 2013

  • Bondholder notification service offered

    Citi has launched a communication and notification service to enable structured finance issuers to communicate key actions directly to investors in real-time via the Bloomberg Professional service. In its capacity as notification agent for issuers, the bank will deliver automated amendments, waivers and consents and other types of notices directly to investors via CF, the corporate filing platform available to .......

    News Round-up 28 January 2013

  • Secured future?

    Euro ABS, covered bond convergence contemplated

    A growing number of banks are combining their European ABS and covered bonds research under the umbrella term of 'secured funding'. Although the investor bases remain distinct for each product, the move could mark the start of a convergence between the two sectors.

    Peter Nowell, head of ABS trading at BNP Paribas, notes that there are logical reasons for banks .......

    News Analysis 28 January 2013

  • Credit card criteria issued

    Kroll Bond Rating Agency has released its methodology for rating US credit card ABS. The methodology incorporates an analysis of the quality and expected performance of the underlying collateral, the originator and servicer's business model and operational capabilities.

    KBRA's approach reviews a credit card issuer's ongoing originations, target customer base, account management and customer service capabilities. In addition, the agency .......

    News Round-up 25 January 2013

  • Auto ABS losses up on seasonal factors

    Seasonal patterns drove losses on both US prime and subprime auto loan ABS higher last month, according to Fitch's latest index results for the sector. Nevertheless, prime asset performance is expected to remain strong in 2013, albeit with losses normalising throughout the course of the year.

    Prime losses closed out 2012 within historically low levels and 18% below the rate .......

    News Round-up 25 January 2013

  • French auto lease legal implications eyed

    Access to underlying sales proceeds can be limited in case of seller/lessor insolvency in French auto lease receivables securitisations, Fitch says. This is due to the specifics of insolvency proceedings under French law and is, in the agency's opinion, making assessment of the legal implications of the seller/lessor insolvency essential for such deals.

    Fitch's view is based on legal opinions .......

    News Round-up 25 January 2013

  • Consumer ABS tiering emerging

    The new issue US ABS market has sprung to life over the past two weeks, posting volumes of US$10.8bn across 12 transactions. ABS analysts at Wells Fargo suggest that this collection of deals offers a useful case study for gauging relative value.

    Based on spreads observed for deals placed so far in 2013, the Wells Fargo analysts identify value in .......

    News Round-up 24 January 2013

  • ARC taps CRE pros

    American Realty Capital (ARC) has recruited Donald MacKinnon and Nicholas Radesca as senior managers in its debt capital markets and corporate finance team.

    MacKinnon brings to the company over 20 years of experience, having previously served as a portfolio manager of high yield credit-sensitive commercial real estate debt products for a real estate advisory company and as an md at .......

    Job Swaps 24 January 2013

  • Nephila gains new partner

    KKR has acquired a 24.9% interest in Nephila Capital. Shares will be acquired pro rata from Nephila management and from Nephila's minority stakeholder Man Group, which will retain an 18.75% interest in the firm.

    Nephila was established in 1998 as part of Willis, at the time a KKR portfolio company. The firm invests in reinsurance risk, including insurance-linked securities, catastrophe .......

    Job Swaps 24 January 2013

  • Fall in bankruptcies bodes well for performance

    Personal bankruptcies in the US fell by over 14% last year, exceeding Fitch's forecast of 11%. This marked the second annual decline since the Bankruptcy Abuse Prevention and Consumer Protection Act was passed in 2005.

    Fitch projects bankruptcies to fall by another 6%-7% in 2013. This comes as the amount of consumer credit continues to rise.

    Total consumer credit reached .......

    News Round-up 23 January 2013

  • Tobacco bonds on review

    Moody's has placed under review with direction uncertain a number of term tobacco settlement revenue bonds. The transactions are securitisations of payments that major tobacco manufacturers owe to 46 states and certain territories, pursuant to the 1998 Master Settlement Agreement (MSA).

    The rating actions are a result of credit implications of the proposed agreement announced on 18 December 2012, to .......

    News Round-up 23 January 2013
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