ABS

  • Asian attraction

    Yield available, although challenges remain

    The structured finance markets in Asia face significant constraining factors in 2013. A preference for covered bonds will limit RMBS issuance on the mainland, while deal volume in Japan and Australia is expected to be flat to lower, with demand continuing to outstrip supply.

    Gregory Park, managing partner at Northstone Peak, notes that the structured finance market in Asia remains .......

    News Analysis 19 December 2012

  • Rally drivers

    US ABS recovery subject to potential shocks

    The US ABS market rallied strongly in 2012, with CLO and CMBS issuance volumes in particular surprising many. A substantial recovery is anticipated in most areas next year, although this remains subject to potential fiscal and regulatory shocks.

    "Across the spectrum of securitised products, 2012 has turned out to be an impressive year for investors, with substantial double-digit returns - .......

    News Analysis 18 December 2012

  • Not giving in

    Solid 2013 anticipated for European securitisation

    The European securitisation market has been dominated by regulatory pressures, but - as participants become more comfortable with the changes being imposed - secondary market rallies have made primary issuance increasingly attractive. Supply in 2013 is expected to be broadly steady, with issuance anticipated right from the start of the year.

    Kevin Ingram, partner at Clifford Chance, believes that while .......

    News Analysis 18 December 2012

  • Loan-level regulatory implications noted

    Opinion is divided among market participants as to whether the ECB and Bank of England's loan-level data requirements will bring meaningful benefits for investors and whether such benefits outweigh the cost to originators of providing this information in the appropriate formats, according to Reed Smith in a recent client memo. While increased compliance costs are a disincentive to ABS issuance, .......

    News Round-up 18 December 2012

  • Downgraded ABCP remains investable

    Investors continue to buy the US and EMEA ABCP programmes downgraded from P-1 toP-2 in 2012, Moody's reports. For sponsors and sellers, many of the downgraded ABCP programmes remain attractive funding platforms, the agency says.

    Moody's notes that bank downgrades rather than asset deterioration drove the ABCP downgrades. "Although ABCP has traditionally been structured and marketed as a P-1 product, .......

    News Round-up 18 December 2012

  • Mexican equipment ABS critiqued

    Fitch says that several recent Mexican equipment lease ABS have credit risks that may not have been adequately addressed. The agency is therefore concerned about recent transactions coming to market that carry a triple-A national scale rating from other credit rating agencies.

    Fitch highlights three key credit concerns: small, lowly-rated sponsors securitising a large portion of their balance sheet; the .......

    News Round-up 18 December 2012

  • Stable outlook for ABCP

    The global ABCP market continues to prove resilient in the face of adversity, according to Fitch, having weathered an onslaught of market disruptions and regulatory challenges over the past few years. In the agency's view, at more than US$300bn, global ABCP outstandings remain a sizable force in the short-term capital markets and a valuable offering from both issuer and investor .......

    News Round-up 17 December 2012

  • Strengthening performance forecast for US SF

    Strengthening performance and issuance tailwinds in most US structured finance sectors are likely to push growth further in 2013, according to Fitch. However, one key area to watch in the coming year will be the potential drag created by fiscal cliff-related issues.

    "Securitisation re-established its importance to the global capital markets in 2012 and we expect this positive trajectory to .......

    News Round-up 14 December 2012

  • Slowing improvements drive credit card outlook

    Moody's has changed its outlook for US credit card ABS to stable from positive as collateral improvements slow.

    "Our outlook for the sector was positive in 2012 based on the expectation that collateral performance would see a significant decline in charge-offs, which occurred," says Moody's avp - analyst Gregory Gemson. "For 2013, we expect only slight improvements in charge-offs, which .......

    News Round-up 13 December 2012

  • Credit chief takes over ABS fund

    Simon Finch, credit cio at CQS, has replaced Alistair Lumsden as fund manager for the CQS ABS Fund. He will lead a team of 11 professionals in New York and London, where he is based. Finch has spent almost five years at CQS and was previously head of ABS at Abbey National.

    .......

    Job Swaps 12 December 2012

  • Lower quality, higher issuance for auto ABS

    The credit quality of US auto ABS will decline marginally in 2013, reflecting lenders' gradual return to higher but reasonable levels of risk taking, according to Moody's 2013 outlook for the sector. The agency also projects higher issuance, driven by investor demand to satisfy a need for short-term cash surrogate investment, as well as a need for yield from deeply .......

    News Round-up 12 December 2012

  • 2013 Euro ABS credit quality up, issuance down

    The credit quality of new European ABS and RMBS issuance in 2013 will be better than that of existing transactions, expects Moody's. However, deals will be smaller and that will affect issuance volume for the year ahead.

    The agency adds that the performance of existing transactions will be correlated to sovereign strength, with asset performance being stable in highly-rated countries .......

    News Round-up 10 December 2012

  • Timeshare delinquencies normalising

    US timeshare ABS delinquencies for 3Q12 were largely in line with those seen in the quarter before, says Fitch. Delinquency trends have largely normalised at their historical levels following dramatic increases in 2008 and 2009.

    The agency's latest timeshare index results show delinquencies for the quarter were 3.28%, down very slightly from 3.29% the quarter before. Delinquencies for the same .......

    News Round-up 10 December 2012

  • CRA 3 concerns highlighted

    A recent Reed Smith memo highlights three areas of concern for the securitisation industry with CRA 3 - rating agency rotation, public disclosure and civil liability (see also SCI 16 August). The European Council has published what may be the final form of the second amendment to the rating agency regulation, confirming that it will assent to it becoming effective .......

    News Round-up 6 December 2012

  • Increased clarity on LLD requirements

    The latest amendments to the ECB's collateral eligibility framework include information on loan level data (LLD) requirements for posted securitisations and the European DataWarehouse (ED). Data will have to be reported to the ED at least on a quarterly basis, no later than one month after the IPD. If data is not provided within one month of the IPD, repo .......

    News Round-up 6 December 2012

  • SCI conference line-up unveiled

    Final panellist line-ups have been announced for SCI's 6th Annual Pricing, Trading & Risk Management Seminar, which is taking place on 7 December in London. The event is being held at Reed Smith's offices at 20 Primrose Street, EC2A 2RS.

    This conference will focus on risk management and pricing/valuation issues, as well as trading and secondary market strategies. The programme .......

    News Round-up 5 December 2012

  • Second infrastructure debt fund launched

    AMP Capital has appointed Patrick Trears as infrastructure debt director in New York and launched a new debt fund in response to increased infrastructure investment demand. The new fund is AMP Capital Infrastructure Debt Fund II (IDF II).

    Trears joins from WestLB and has previously held structured and project finance positions at Hypo Real Estate, Citi Investment Bank and DEPFA .......

    Job Swaps 5 December 2012

  • Fund closed, new one prepped

    Deer Park Road Corp's flagship fund, STS Partners Fund, has closed to new investors. The fund - which focuses on deeply discounted short-duration, high cashflow MBS and other ABS securities - was launched in May 2008 and has since grown to more than US$600m AUM.

    Michael Craig-Scheckman, portfolio manager and owner of the firm, comments: "In order to preserve the .......

    Job Swaps 4 December 2012

  • Improvement seen in Japan consumer credit

    Moody's reports that the overall credit quality of all consumer asset classes in Japan's ABS market has improved. The agency expects the sector to remain stable, even in the face of severe unemployment and a decline in income levels.

    The Japanese ABS default rate is generally stable. The default rates of card cash advances and consumer finance loans, for instance, .......

    News Round-up 29 November 2012

  • Loan-level reporting timelines lengthened

    The ECB has adjusted its timeline for the start of loan-level data reporting requirements as part of the Eurosystem's collateral framework, to allow for the smooth implementation of what it deems as necessary amendments to Guideline ECB/2011/14 at the national level.

    For RMBS and SME transactions, the reporting requirements will now be mandatory as of 3 January 2013. For CMBS, .......

    News Round-up 27 November 2012

  • Disclosure principles published

    IOSCO has published its final 'Principles for Ongoing Disclosure for Asset Backed Securities' report, which is designed to provide guidance to securities regulators that are developing or reviewing their regulatory regimes for ongoing disclosure for ABS. The eleven principles were developed as a complement to IOSCO's 'Disclosure Principles for Public Offerings and Listings of Asset-Backed Securities', which was issued in .......

    News Round-up 27 November 2012
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