ABS

  • 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

  • Regulatory change could spur Aussie issuance

    Regulatory changes could have a significant impact on Australian structured finance issuance in 2013, Fitch says. Specifically, the potential revision of Prudential Standard APS120 would have a direct impact on issuance levels by determining the capital treatment of securitisations and potentially opening up new issuance structures.

    A draft paper on APS120 is expected early this year. The possible changes mooted .......

    News Round-up 23 January 2013

  • CRA work plan released

    The European Securities and Markets Authority (ESMA) has published its '2013 CRA Supervision and Policy Work Plan', which sets out the key elements of its supervisory programme for the 19 registered and one certified credit rating agencies (CRAs) in the EU. The aim is to embed good practices internally at CRAs and to ensure that they meet the requirements of .......

    News Round-up 23 January 2013

  • Future of ABCP to be determined

    US ABCP outstandings are likely to remain flat or modestly decline, according to S&P, until the SEC clarifies the extent to which the Volcker Rule will apply to ABCP conduits. If the SEC determines that the Volcker Rule will apply in all respects to ABCP conduits, the agency projects outstandings to decline from US$308.9bn to US$230bn-US$250bn by end-2013. However, if .......

    News Round-up 22 January 2013

  • Year of the cat?

    ILS issuance and innovation to increase

    Vitality Re IV - the first catastrophe bond of 2013 - priced last week as the insurance-linked securities market got up and running. Supply this year is expected to reach new heights, while further innovation and diversification are also forecast.

    "To already have a deal in the market is a good start. We are used to seeing deals coming early .......

    News Analysis 22 January 2013

  • Aircraft ABS eyed for yield

    Aircraft ABS prices rallied during the third and fourth quarter, as investors sought to add risk, especially in assets that provide extra yield. ABS analysts at Wells Fargo note that the aircraft ABS market has neatly bifurcated by vintage, with limited overlap in the investor bases for the two different types.

    Older pre-9/11 deals now price at or near the .......

    News Round-up 21 January 2013

  • Assured wraps targeted

    Moody's has downgraded the ratings of 225 classes of US structured finance securities wrapped by Assured Guaranty Municipal Corp (AGM), Assured Guaranty Corp (AGC) and their affiliated insurance operating companies. The affected securities include certain RMBS, ABS, structured notes and Trups CDOs.

    The action is solely driven by the agency's downgrade of the insurer's insurance financial strength (IFS) ratings (SCI .......

    News Round-up 21 January 2013

  • Euro SF volume tough to call

    European structured finance volume for 2013 remains difficult to call. For example, while S&P expects overall investor-placed issuance to fall over the year, Fitch forecasts a rise of 5%.

    Fitch predicts that public and retained European structured finance issuance this year will be broadly unchanged from 2012, at about €200bn. Of this figure, 40% is expected to be placed with .......

    News Round-up 16 January 2013
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