ABS

  • 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

  • Drilling rig risks outlined

    Fitch has published a report outlining the risks and mitigants associated with drilling rig financing transactions. The move comes as new vessels arrive in Brazilian waters.

    "With the discoveries of presalt layer reserves in offshore Brazilian waters and Petrobras's US$236.5bn four-year investment plan, there has been increased demand for drilling rig assets," says Bernardo Costa, a senior director in Fitch's .......

    News Round-up 7 September 2012

  • China's pilot programme progressing

    Moody's reports that China's regulators are making steady progress towards establishing a securitisation market in the country. However, as has been the case with other jurisdictions, the process will be long and involved.

    "As in other countries, the enactment of a securitisation law in China - which is essential for the market - is a time-consuming and complex process. It .......

    News Round-up 6 September 2012

  • Investor relations head joins

    SCIO Capital has added Joern Czech as head of business development and investor relations. He was most recently at Goldman Sachs, where he served as executive director for structured solutions.

    Czech spent 10 years in Deutsche Bank's global markets division before he joined Goldman Sachs. He was responsible for Deutsche Bank's investment solutions to institutional real money investors. He began .......

    Job Swaps 6 September 2012

  • Bridging the debt gap

    Jonathan Rochford, portfolio manager at Narrow Road Capital, answers SCI's questions

    Q: How is Narrow Road Capital involved in structured credit in Australia?
    A:     Narrow Road Capital is an Australian high yield and distressed debt asset management business, targeting investments primarily in loans, bonds, structured credit and listed notes. Structured credit is a key part of what we invest in, with the deal flow more regular and .......

    The Structured Credit Interview 4 September 2012

  • Synthetic infrastructure trade completed

    NordLB has placed the mezzanine tranche of a risk transfer trade, dubbed Blue Rock, with a single institutional investor. The transaction provides credit protection on a £307m portfolio of 20 high grade UK infrastructure loans.

    "With Blue Rock, we are responding to the growing demand among institutional investors for asset-backed capital market products," comments Hinrich Holm, NordLB managing board member .......

    News Round-up 3 September 2012

  • Auto paper fuels secondary activity

    European auto ABS proved the flavour of the day yesterday as a succession of bonds achieved covers over 100 in the secondary market, encouraging US traders to also start showing auto paper. SCI's PriceABS BWIC data captured a mix of new and familiar names for the session, with some interesting patterns emerging.

    Market sources indicate that the activity .......

    Market Reports 31 August 2012

  • FATCA implications examined

    The forthcoming US Foreign Account Tax Compliance Act (FATCA) could have wide-ranging implications for global structured finance transactions, Fitch says. In particular, the FATCA status of SPVs and counterparties handling payments will be a key issue. Under current plans, withholding tax would apply on relevant interest payments from January 2014 and relevant principal payments from January 2015.

    The Act is .......

    News Round-up 31 August 2012

  • Indian CV ABS stress tested

    Fitch says that Indian commercial vehicle (CV) loan ABS are resilient, even under a severe slowdown in the Indian economy. The agency has subjected its ratings on CV loan ABS to moderate and severe stress to assess their impact on asset performance.

    The stress factors against which the ratings were analysed are a slow-down in industrial production, which leads to .......

    News Round-up 29 August 2012

  • SLABS issuance defies market changes

    US student loan ABS issuance has increased this year and ratings performance has remained stable, despite significant changes in the sector, according to S&P.

    The changes have centred on shifts in how government-guaranteed student loans are funded, which has put a sizable dent in government-backed student loan ABS issuance. Despite this setback, Sallie Mae, a handful of municipal issuers and .......

    News Round-up 28 August 2012

  • ABS bucks quiet secondary trend

    After a run of elevated supply, secondary trading in the US tailed off at the end of last week and remained comparatively quiet on Monday. RMBS volumes, in particular, are muted as investors digest remittance reports. Activity in the ABS sector has ticked up, however.

    SCI's PriceABS BWIC data shows fewer RMBS line items than usual for yesterday's .......

    Market Reports 28 August 2012

  • SLABS paper trades in secondary

    Secondary market supply remained strongly elevated yesterday, with 480 line items represented in SCI's PriceABS BWIC data. Student loan ABS paper, in particular, was circulating and attracting interest at tight levels.

    The SLMA 2011-A A2 tranche was covered in the N+150/160 range, coming tight from its talk earlier in the day of N+170/180. Fellow Sallie Mae private student .......

    Market Reports 24 August 2012

  • Euro rating transitions examined

    By mid-2012, only 1.11% of European structured finance notes outstanding in mid-2007 had defaulted, according to S&P. Meanwhile, the 12-month rolling default rate edged only slightly higher to 0.5%.

    Even amid the deteriorating European economy, worsening collateral performance and the application of some updates to S&P's ratings criteria, the rise in the 12-month rolling downgrade rate slowed to only 30.8%. .......

    News Round-up 24 August 2012

  • Prime auto ABS stress tested

    The majority of outstanding triple-A rated US prime auto loan ABS notes are comfortably able to withstand a hypothetical recession and material declines in used vehicle recovery rates, according to recent stress tests conducted by Fitch.

    Under the moderate scenario, the agency would expect all triple-A rated notes to remain rated investment grade. Nearly three-quarters of these ratings are expected .......

    News Round-up 23 August 2012

  • Polish auto ABS marketing

    A rare Polish auto loan ABS has hit the market. Dubbed GNB Auto Plan, the transaction is originated by Getin Noble Bank and securitises approximately 33,800 standardised loans, of which 52% is secured by new cars and the remainder by used cars up to five years old.

    The loans were mainly originated via Getin Noble Bank's external car dealer network, .......

    News Round-up 23 August 2012

  • Technical bump for charge-offs

    US securitised credit card charge-offs increased to 4.56% in July from 4.27% in June, according to Moody's Credit Card Indices. One-time technical factors explain the rise, the agency says, and the charge-off rate index is expected to resume its downward trajectory next month.

    The 29bp rise in the charge-off rate index was the result of increases Moody's had expected from .......

    News Round-up 23 August 2012

  • Tobacco review completed

    Fitch has completed the review of its tobacco portfolio accounting for the amount of Master Settlement Agreement (MSA) payment received by each securitisation trust in 2012. For 2012, the aggregate MSA payment was 1.97% higher than the amount in 2011.

    The agency last month published updated tobacco settlement ABS criteria (SCI 17 July), which included a change in the base-case .......

    News Round-up 23 August 2012

  • MountainView expands, forms alliance

    MountainView Capital Holdings has acquired Clayton IPS, the independent pricing service of Clayton Holdings. It has also appointed Andrew Platt to its executive team as head of business development.

    The newly-acquired IPS unit provides fixed income managers and investors with third-party pricing for securities such as ABS, RMBS and CMBS. The team also values residential whole loans, CDS, secured corporate .......

    Job Swaps 23 August 2012

  • Euro issuance constraints highlighted

    Weak economies, cheap central bank funding and regulatory uncertainty look set to constrain European securitisation issuance for the foreseeable future, according to S&P. The agency reports that investor-placed securitisation issuance in the region totalled €44bn in the first seven months of 2012 - down by about 10% from the same period in 2011.

    "We believe European securitisation issuance could end .......

    News Round-up 22 August 2012

  • Country credit deterioration RFC issued

    Moody's is inviting market participants to comment on proposed adjustments to its modelling assumptions designed to account for the impact of rapid and significant country credit deterioration on structured finance transactions. The proposal would extend the sovereign ceiling concept to the entire capital structure and provide a mechanism to amend loss distribution when mezzanine and subordinate tranches are impacted.

    Moody's .......

    News Round-up 22 August 2012

  • Early delinquency indices introduced

    Fitch's outlook on Indian ABS ratings remains stable, despite the prevailing stress in the Indian economy, which has driven deteriorating performance across commercial vehicle (CV) and construction equipment (CE) loans. This is in line with the agency's negative outlook for these asset classes.

    CV loans backing post-2009 vintage transactions reached a weighted average 90+dpd of 2% within 12 months of .......

    News Round-up 22 August 2012
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