ABS

  • Canadian card ABS gains traction

    Year-to-date new issue activity from Canadian-domiciled credit card ABS sponsors has reached C$7.1bn, a level not observed since 2008, according to S&P. Cross-border transactions have accounted for approximately 60% of total new issuance in 2012 - a trend that it is expected to continue.

    "In our opinion, strong US investor interest in Canadian receivables, coupled with a relative funding cost .......

    News Round-up 27 September 2012

  • Unicredit tender results in

    Unicredit has published the results for all bonds subject to its recent tender (SCI 12 September), apart from four Cordusio tranches - CORDR 1 C, 2 C, 4 C and 4 D - whose offer deadline has been extended to today. The bank accepted €571.96m nominal value of notes out of the €985.75m offered via an unmodified Dutch auction. Average .......

    News Round-up 27 September 2012

  • ABS syndicate strengthened

    Tristan Cheesman has joined JPMorgan's European securitised product group syndicate in London. He moves from Commerzbank and reports to James Crispin, head of ABS syndication at JPMorgan.

    .......

    Job Swaps 25 September 2012

  • Law firm poaches six

    K&L Gates has expanded its finance practice with the addition of four new partners in the London office. The law firm has also recruited two partners to its real estate investment, development and finance practice in the Charlotte office.

    The London hires comprise Matthew Duncan, Theresa Kradjian and Paul Matthews - who join from Sidley Austin - as well as .......

    Job Swaps 24 September 2012

  • Charge-offs continue to decline

    Securitised credit card charge-offs, as measured by Moody's Credit Card Index charge-off rate, decreased to 4.19% in August from 4.56% in July. Five of the six largest trusts posted declines, led by a 97bp improvement in the Chase trust's charge-off rate, largely attributable to a normalisation from its recent change in charge-off recognition policy. American Express was the only one .......

    News Round-up 24 September 2012

  • Level playing field sought

    Calls for even-handed regulatory treatment of European ABS and covered bonds have re-emerged (see also SCI 6 October 2011). Solvency II capital requirements, in particular, are seen to be punitive for ABS instruments.

    "Solvency II rules, as they stand, don't make sense for UK and Dutch triple-A rated RMBS," confirms Andrew Lennox, lead portfolio manager for ABS at ECM. "Rating .......

    News 21 September 2012

  • FFELP SLABS stress tested

    US FFELP student loan ABS ratings would remain largely intact against differing levels of stress, according to recent stress tests conducted by Fitch. The agency subjected its existing US FFELP SLABS portfolio to both moderate and severe scenarios to determine the impact on existing ratings.

    While sovereign risk is the key rating driver for FFELP student loan ABS transactions, both .......

    News Round-up 20 September 2012

  • Euro auto ABS circulating

    European secondary ABS supply was dominated by auto paper yesterday. A rally in the sector saw many names being bid up over par.

    One bond that appears often in SCI's PriceABS BWIC archive - VCL 13 A - was covered at 100.38 during the session, having previously been covered at 100.385, 100.27 and 100.255 on 15 August, 13 .......

    Market Reports 19 September 2012

  • Volume forecasts revised higher

    Structured products strategists at Wells Fargo predict that total US consumer ABS issuance will reach US$170bn for full-year 2012 - approximately a 60% increase over 2011. They expect about US$20bn of new consumer ABS in September alone, assuming the usual seasonal patterns hold and there are no macroeconomic or political disruptions, with the issuance pace remaining brisk in October and .......

    News 18 September 2012

  • Auto ABS performance stabilising

    US auto ABS performance stabilised in August, with losses improving after the previous month's dip, according to Fitch's latest index results for the sector. Prime annualised net losses (ANL) dropped by 24% in August to 0.25% from 0.33% the previous month, a 47% improvement year-over-year (YOY).

    Cumulative net losses (CNL) declined by 11% month-over-month (MOM) to 0.32% from 0.36%. However, .......

    News Round-up 18 September 2012

  • IFM makes Euro expansion

    Industry Funds Management (IFM) has appointed David Cooper as investment director for its debt investments group. He will be based in London and lead IFM's infrastructure debt expansion into the UK and Europe.

    Cooper joins from Barclays, where he was head of the infrastructure and structured project finance team. He has also worked at RBS and HBOS.

    .......

    Job Swaps 18 September 2012

  • Trade receivables programme minted

    Finacity Corporation and ING Belgium have facilitated the successful closing of a pan-European trade receivables securitisation for Sonae Indústria SGPS. The securitisation programme will provide Sonae Indústria with cash proceeds of up to €100m through the on-going purchase of receivables from its European operations.

    Finacity and ING Belgium acted jointly to set the transaction up. ING Belgium structured and funded .......

    News Round-up 17 September 2012

  • UK credit card ABS rebounds

    S&P has published its 2Q12 UK credit card ABS index report, which shows that performance has remained stable despite tough economic conditions. Charge-offs and delinquencies both decreased quarter-on-quarter and new issuance increased.

    "The stable credit performance of UK credit card ABS master trusts despite persistently high unemployment rates reflects our view that the volume of delinquencies is more sensitive to absolute .......

    News Round-up 14 September 2012

  • Esoteric ABS capital treatment critiqued

    Certain non-traditional ABS sectors are vulnerable to spiking to 100% risk-based capital requirements under the new US bank trading book rules, owing to their non-conformity with classic consumer ABS structures, performance measurement and regulatory definitions. Citi securitisation strategists argue that stranded assets, dealer floorplan, rental car, franchise, aircraft and container ABS represent secured corporate credit risk and so the associated .......

    News 13 September 2012

  • Euro reporting improving

    Better reporting in EMEA structured finance transactions has seen nearly one-third of deals merit a higher issuer report grade (IRG) since Fitch re-launched IRGs last year (SCI 15 November). The agency notes that while there is still room for improvement, with just 12.4% of transactions receiving the highest 4- or 5-star grades, discussions with report providers that followed the re-launch .......

    News Round-up 13 September 2012

  • Unicredit tender announced

    Unicredit has announced a tender offer for 22 Cordusio RMBS, F-E Mortgages, Capital Mortgages, Locat and F-E Gold bonds. The liability management exercise will be undertaken via an unmodified Dutch auction. The offer period will expire on 24 September, with settlement expected on 27 September.

    .......

    News Round-up 12 September 2012

  • Portuguese country ceiling lowered

    Moody's has downgraded to Baa3 the ratings of 47 securities across 32 Portuguese ABS and RMBS. The agency has also placed on review for downgrade the ratings of a further 90 Portuguese ABS and RMBS securities.

    The downgrades follow Moody's decision to lower the Portuguese country ceiling from Baa1 to Baa3 on 5 September. The main driver for the rating .......

    News Round-up 12 September 2012

  • Stable outlook for South Korean SF

    South Korean Fitch-rated structured finance transactions are well-placed to withstand the country's slowing economy and its high household debt, the agency says. Its outlook for all transactions is stable and all ratings have been affirmed so far this year.

    Fitch says deterioration in the performance of the transactions' underlying assets, stemming from rising household debt, is unlikely to be material. .......

    News Round-up 12 September 2012

  • Card delinquencies hit all-time low

    Delinquencies for US credit card ABS have plunged to an all-time low, according to Fitch's latest index results for the sector. Delinquencies are now down by 25.74% year-over-year and are also well below the long-term average of 3.02%.

    Fitch's 60-day delinquency index reached 1.76% during August. The 6bp decline brought delinquencies down to their lowest level since the agency launched .......

    News Round-up 11 September 2012

  • Timeshare delinquencies stabilising

    Consistent with seasonal trends, US timeshare ABS delinquencies dropped in the second quarter, according to the latest timeshare index results from Fitch. Total delinquencies for 2Q12 were 3.29%, down from 3.58% in 1Q12.

    Year-over-year total delinquencies remain consistent with the 2Q11 level of 3.28%. Delinquencies appear to be normalising at their historical levels, Fitch notes, following the dramatic increases that .......

    News Round-up 11 September 2012

  • New issues rule ABS bid-lists

    US ABS secondary market volumes have fallen off from the start of the week, with only a few lists being circulated yesterday. Auto continues to be the most active sector (SCI 31 August), accounting for more than one-third of supply during the session. Interactive Data notes that new issue paper was mostly out for the bid.

    SCI's PriceABS BWIC data .......

    Market Reports 7 September 2012
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