ABS

  • Peripheral rating actions explained

    Moody's expects that Dutch, German and UK ABS and RMBS will come under minimal further pressure following recent actions on bank ratings and current proposed changes to the agency's structured finance methodologies. However, the likely impact of both factors on RMBS and ABS in Spain, Portugal, Italy and Ireland will range from moderate to significant.

    Moody's anticipates that less than .......

    News Round-up 15 November 2012

  • Cat bonds relatively unscathed by Sandy

    The impact of Hurricane Sandy on the catastrophe bond market is likely to be muted based on current estimates, with little impact on new pricing, according to Willis Capital Markets & Advisory (WCMA). The scope and scale of the storm means it is unlikely that any bonds will be triggered solely by Sandy.

    However, if losses mount and early estimates .......

    News Round-up 15 November 2012

  • PCS label up and running

    The Prime Collateralised Securities (PCS) initiative (SCI passim) has officially opened for business with a series of board appointments. The Irish Stock Exchange, True Sale Initiative and KPMG have also been confirmed as screening partners to assist in checking key documentation.

    The PCS board now comprises: Francesco Papadia, former director general for market operations at the ECB, who will lead the .......

    Job Swaps 15 November 2012

  • Credit hedge fund adds trio

    400 Capital Management has made key additions to its portfolio management, quantitative analytics and operations teams. Dan Krup, Michael Zang and Steve Hemmes all join in senior roles.

    Krup joins from Western Asset Management as director of asset-backed credit and special situations portfolio management. He will lead the firm's efforts in researching, sourcing and analysing opportunities within consumer and commercial .......

    Job Swaps 13 November 2012

  • Kildare makes UK expansion

    Kildare Capital has founded Kildare Capital (UK), an FSA-registered firm with a full-service ABS trading desk which will focus on student loan ABS. Francesco Paolo Bellopede will serve as director of compliance and operations in London.

    .......

    Job Swaps 12 November 2012

  • More mixed news for SLABS

    The US Department of Education issued final regulations last week to help more financially distressed federal student loan borrowers lower their monthly payments. Moody's believes these changes are positive for private student loan securitisations but mixed for FFELP.

    The final rule makes it easier for FFELP and Direct Loan borrowers to apply for the current income-based repayment plan (IBR) and .......

    News Round-up 9 November 2012

  • India SF delinquencies to rise

    Fitch predicts a rise in delinquencies in portfolios backing Indian structured finance transactions as a result of recent floods in the Andhra Pradesh region. The floods are expected to disrupt loan collections in affected districts and impact borrowers' ability to repay.

    The agency believes Indian SF transactions are generally resilient due to sufficient credit enhancement that has been built up .......

    News Round-up 8 November 2012

  • REIT makes management changes, expands

    William Roth has been named as Two Harbors Investment Corp cio, effective 1 January 2013. Matthew Koeppen has been promoted to md and William Greenberg also joins the firm from UBS as md.

    Roth was previously co-cio along with Steven Kuhn. Kuhn will now focus on his role at the firm's external manager, Pine River Capital Management, where he is .......

    Job Swaps 8 November 2012

  • SLABS pool benchmarking recommended

    Private student loan ABS has seen demand increase during 2012, with spreads tightening commensurately, with spreads for new issue five-year average life bonds almost halving between January and October. Wells Fargo ABS analysts report that relative value is still likely to depend on security selection and structural protections and advocate benchmarking deals based on their pool factor when making relative .......

    News 7 November 2012

  • Sandy 'credit negative' for cat bond

    Details are beginning to emerge on the extent of Superstorm Sandy's impact on catastrophe bonds. Moody's believes the estimated insured property losses of US$7bn-US$20bn are credit negative for Combine Re Series 2012.

    The US$200m cat bond was issued by Swiss Re earlier this year (SCI 16 March). The agency says that Combine Re will now have to use up additional .......

    News Round-up 6 November 2012

  • Links Finance ratings reviewed

    Moody's has placed the Euro and US MTN programmes of Links Finance on review for possible downgrade. The move follows the placement of Bank of Montreal's Aa2 rating under review for possible downgrade on 26 October.

    There is a direct linkage between the ratings of the SIV and its sponsor, BMO, due to its commitment to provide liquidity support in .......

    News Round-up 5 November 2012

  • Solvency II proposals critiqued

    The European Insurance and Occupational Pensions Authority (EIOPA) has published its proposed capital rules for Solvency II, albeit it is labelled as a working document to allow insurance companies to carry out quantitative impact studies. European asset-backed analysts at RBS note that in the aggregate the requirements are now fairly well-specified, with a few issues remaining open.

    "Important among these .......

    News 2 November 2012

  • Putting money to work

    Quarterly review and outlook for European ABS

    We asked Lloyds Bank, the winners of SCI's 2011 arranger award for European consumer/credit card ABS, its views on activity in Q3 and expectations for Q4 in the sector. Below are SCI's questions and the responses from Bob Paterson, head of ABS syndicate, Lloyds Bank Wholesale Banking & Markets.

    Over the past quarter, what have been the key trends in .......

    News Analysis 1 November 2012

  • Swiss Re preps cat bond first

    Swiss Re is in the market with what is being hailed as a catastrophe bond first. The senior tranche of the reinsurer's second Mythen Re transaction is exposed to both a catastrophe peril and mortality risk.

    Rated by S&P, the dollar-denominated deal comprises 4.2-year single-B plus class A notes and four-year single-B minus class Cs. The class A notes will .......

    News Round-up 31 October 2012

  • Argentine sub-sovereign deals downgraded

    Moody's has downgraded the ratings of five Argentine securitisations linked to sub-sovereign entities. The move follows its downgrade of the ratings of Argentine provinces and municipalities on 17 October.

    The rating action affects: Fideicomiso Financiero de Infraestructura Electrica - Serie I and III; Fideicomiso Financiero Programa Federal Plurianual de Construcción de Viviendas - Provincia del Chaco - Serie I and .......

    News Round-up 29 October 2012

  • Multi-disciplinary approach

    Hansol Kim, md in FTI Consulting's structured finance practice, answers SCI's questions

    Q: How and when did FTI Consulting become involved in the securitisation market?
    A:     FTI is a multi-disciplinary consulting firm that is well known in the restructuring world, which falls under our corporate finance group. But we also have robust and established practices in forensic and litigation, economic, strategic communications and technology consulting. I run the .......

    Provider Profile 29 October 2012

  • Market seizes credit card paper

    Secondary US ABS supply took off yesterday. SCI's PriceABS BWIC data shows that a number of credit card ABS tranches were covered at tight levels during the session.

    The tightest level was achieved for Banc One Capital Markets' BOIT 2003-A4 A4 tranche, which was covered at 2bp over Libor. The widest level in the PriceABS archive was seen .......

    Market Reports 26 October 2012

  • Up-tick for FFELP consolidation prepays

    The effects of a short-term White House plan intended to relieve some pressure on student borrowers are starting to surface in the student loan ABS sector. Fitch believes an up-tick in consolidation prepayments in some recent FFELP transactions is largely the result of students taking advantage of the Direct Loan Consolidation Program that President Obama invoked by executive authority in .......

    News Round-up 26 October 2012

  • ILS fund to target Japanese investors

    Asuka Asset Management Co has established a Bermuda insurance-linked securities (ILS) investment fund, with an initial seed investment of approximately US$40m. The master-feeder fund structure, dubbed Asuka ILS Opportunities Unit Trust, will feed into a Bermuda master mutual fund company called Asuka ILS Opportunities Fund.

    The fund will initially target sophisticated and institutional investors in Japan. It will be sub-managed .......

    News Round-up 26 October 2012

  • CFPB report 'mixed' for SLABS

    The Consumer Financial Protection Bureau (CFPB) has released its first annual report on private credit student loans. The agency's proposals are largely benign for the student loan ABS market, although there are some areas of concern.

    Citi ABS analysts note that the recommendations introduce three main risks for the market. While the proposals could encourage adverse selection resulting from CFPB's .......

    News 24 October 2012

  • Punch restructuring underway

    Punch Taverns has released its results for the year ended 18 August. The pub operator also indicated that its debt restructuring process is finally underway.

    The board has conducted an extensive review of the capital structure and determined that both securitisations (Punch A and B) are over-levered and unsustainable in their current form. It states that the restructuring should include .......

    News Round-up 24 October 2012
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