ABS

  • Spanish tariff securitisations downgraded

    Fitch has downgraded five securitisations backed by Spanish electricity tariff deficits from single-A minus to triple-B plus. The downgrades reflect the structural imbalance and the negative trend observed on the overall electricity system cashflows, as well as the uncertainty of the regulatory environment affecting the electricity sector.

    Despite the government's efforts during 2012 to tackle the ongoing tariff deficit problem, .......

    News Round-up 18 March 2013

  • Settlement boosts tobacco ABS

    A 13 March settlement between 17 US states, the District of Columbia and Puerto Rico and several tobacco manufacturers should have a positive impact on cashflows for certain Fitch-rated tobacco settlement ABS transactions, the agency says. The 'stipulated partial settlement award' - initially proposed between these parties in December 2012 - relates to the non-participating manufacturer (NPM) adjustment provisions contained .......

    News Round-up 18 March 2013

  • Varied SF impairments seen in 2012

    Global structured finance (SF) rating and impairment activity varied widely by sector and rating category in 2012, according to Fitch. Downgrades overall remained in line with those seen in 2011; however, the number of active ratings declined year-over-year by close to 20% and this contributed to a higher overall SF downgrade rate of 37% versus 31% in 2011. Upgrades remained .......

    News Round-up 18 March 2013

  • Smart sourcing

    Non-core asset dispositions eyed

    With large US funds increasingly entering the European secondary ABS market in search of yield, European funds are having to be smarter about sourcing assets. Working with a bank seller to restructure residual positions is emerging as one important option.

    The easiest way to source assets in the European secondary ABS market is to be added to BWIC distribution lists, .......

    News Analysis 18 March 2013

  • Capital treatment warning issued

    The Basel Committee's revised proposals on the capital treatment of securitisation exposures (SCI 19 December 2012) could limit the appetite for structured notes among banks, Fitch reports. The agency warns that this could restrict the availability of structured finance as a funding source for the wider economy.

    Fitch also notes that, in its view, the proposals do not reflect historical .......

    News Round-up 15 March 2013

  • Basel MSFA critiqued

    The ASF has submitted a comment letter to the Basel Committee in response to its 18 December consultative document (SCI 19 December 2012). The letter outlines several guiding principles that the association believes should be embodied in any framework for determining capital for securitisation purposes.

    These principles include: promoting understanding by banks of the risks associated with their securitisation exposures; .......

    News Round-up 15 March 2013

  • Securitisation splinter group formed

    The Structured Finance Industry Group (SFIG), a new trade industry advocacy group, has been formed in the US. Its creation comes in the wake of a major division within the ASF, which saw over 20 members resign.

    PNC Capital Markets' Reggie Imamura has been named as chairman of the SFIG board, which will feature a board of directors representing a broad .......

    News 15 March 2013

  • New approach

    Unconstrained absolute return funds in vogue

    New approaches to credit are being explored, as the asset class seeks to remain appealing relative to the equity market. A proliferation of unconstrained absolute return credit funds is consequently expected to emerge.

    The 'great rotation' into equities isn't an immediate threat, considering the nature and composition of the fixed income investor base, according to ECM Asset Management lead portfolio .......

    News Analysis 15 March 2013

  • Stable performance forecast for esoterics

    Moody's expects the performance of asset classes backing US commercial and esoteric ABS to be stable in 2013.

    "With event risk in general declining, most of the kinds of risk we have to watch out for now are idiosyncratic; that is, risks specific to an issuer or asset class," says Michael McDermitt, a Moody's senior credit officer. "This would include, .......

    News Round-up 14 March 2013

  • Peripheral ratings on review

    Moody's has placed on review for downgrade the ratings of 60 classes of notes in 41 RMBS and seven ABS transactions from Spain, Italy and Ireland due to potentially insufficient credit enhancement. The determination of the applicable credit enhancement that drives the rating actions reflects the introduction of additional factors in the agency's analysis to better measure the impact of .......

    News Round-up 14 March 2013

  • Straight-A winding down

    As it enters its senior year, the Straight-A Funding ABCP programme continues to provide liquidity to a market still in need of it, according to Fitch. The vehicle issues ABCP to fund FFELP student loans purchased from lenders between May 2009 and June 2010, but is set to terminate in January 2014.

    "Straight-A married Bush-era legislation with securitisation technology to .......

    News Round-up 14 March 2013

  • Container ABS criteria issued

    Moody's has published a methodology report that details its global approach to rating ABS backed by shipping containers. It reflects the rating agency's analytical approach to ABS deals backed by intermodal containers used primarily in cargo shipping and by the lease payments generated by the containers.

    "In a typical container lease ABS transaction, a special purpose vehicle issues securities and .......

    News Round-up 13 March 2013

  • ED adds central bank economist

    The European DataWarehouse (ED) has appointed José Manuel González-Páramo as chairman. He will oversee the direction of the ED as it seeks to provide full disclosure and transparency for investors in ABS.

    González-Páramo was a member of the ECB's executive board until 2012, with responsibility for market operations and monetary policy implementation. Before that he was a member of the .......

    Job Swaps 13 March 2013

  • Uncommon names in ABS frame

    Following an up-tick in ABS secondary supply last week, healthy BWIC activity continued yesterday. In particular, SCI's PriceABS data shows some rarely seen aircraft and container names out for the bid.

    Having been talked in the low-80s on Thursday last week and then low-80s and low/mid-80s on Friday, the AIRSP 2007-1X G1 aircraft lease tranche traded yesterday. AIRSP .......

    Market Reports 12 March 2013

  • Italian ratings cap lowered

    Fitch has downgraded 103 tranches - 69 RMBS, 15 ABS, 12 CMBS and seven structured credit assets - related to 69 Italian structured finance transactions (50 RMBS, 11 ABS, five CMBS and three structured credit deals) and four CLNs that reference Italian government bonds. The agency has also revised the outlook on 13 tranches of nine Italian RMBS transactions to .......

    News Round-up 12 March 2013

  • Punch class Ms organise

    Punch Taverns has released a positive trading statement and still expects to meet guidance on full-year operating profit, achieve disposals above book value and complete a consensual restructuring by the summer. However, this may prove optimistic, as investor groups begin to organise themselves.

    Punch A class M noteholders are the latest investor group to hire advisors, a move which didn't .......

    News 12 March 2013

  • Canadian mortgage RFC issued

    Moody's has issued a request for comment on a proposal affecting how it analyses the credit risk of Canadian non-insured mortgage pools. The agency plans to use the proposed approach in conjunction with its existing methodologies to rate covered bond and ABCP transactions backed by such pools.

    The proposal centres on Moody's residential mortgage collateral analysis model MILAN, which is .......

    News Round-up 12 March 2013

  • Asset finance partner named

    Berwin Leighton Paisner has promoted a raft of senior associates to its partnership, including asset finance group member Jamie Wiseman-Clarke. He is based in London and the appointment is effective from 1 May 2013.

    .......

    Job Swaps 11 March 2013

  • Stable outlook for Canadian ABS

    Moody's outlook remains stable for Canadian auto and credit card ABS and for the country's seven covered bond programmes. The stable outlook reflects the very strong collateral attributes in both credit card and auto ABS in Canada. Neither sector is expected to be able to match their strong 2012 levels of issuance, however.

    Although originators of auto loans continue to .......

    News Round-up 8 March 2013

  • Looser underwriting eyed in auto ABS

    Competitive industry pressures - particularly in the subprime sector - are driving looser underwriting, which may in turn push losses modestly higher in US auto ABS, according to Fitch. However, low actual losses, strong average credit quality and stable or increasing credit enhancement levels should help steer auto ABS performance away from any significant deterioration.

    FICO and credit tier distributions .......

    News Round-up 8 March 2013

  • Smith Breeden director returns

    Carl Bell has returned to Smith Breeden Associates as a principal and senior portfolio manager. As a senior member of the firm's investment team, he will focus on the analysis and trading of structured credit, including non-agency RMBS, CMBS and ABS. Bell will also continue to serve on Smith Breeden's board of directors; he has served as an outside director .......

    Job Swaps 8 March 2013
×