ABS

  • Counterparty linkage analysed

    Moody's has disclosed that during the last quarter it downgraded most of the 114 European banks and 17 securities firms with global capital markets operations that it placed on review in February. Many of these entities were downgraded below the P-1 short-term rating level, which is a common rating trigger in structured finance transactions.

    The agency has subsequently identified 420 .......

    News Round-up 10 August 2012

  • Chinese trio hit the market

    Shanghai Pudong Road & Bridge Construction Co, Ningbo Urban Construction Investment Holding Co and Nanjing Public Holdings (Group) Co have become the first Chinese local government infrastructure firms to issue asset-backed notes (ABNs) under the country's revived pilot securitisation programme (SCI 12 June). The move follows the release of new guidance by the National Association of Financial Market Institutional Investors .......

    News Round-up 9 August 2012

  • Securitisation partner enlisted

    Kenneth Wright has joined SNR Denton as capital markets partner. He was at Skadden, Arps, Slate, Meagher & Flom and will be based in SNR's New York office, reporting to Stephen Kudenholdt.

    Wright represents issuers, underwriters and dealers and his practice focuses on a range of traditional securitisation asset classes and structures, including trade accounts payable, auto loans and leases, .......

    Job Swaps 8 August 2012

  • Pick-up seen in secondary ABS

    Activity in the secondary US ABS market has picked up, following light volumes last week, albeit with spread levels remaining firm. Credit card, auto and student loan paper was out for bid yesterday.

    Among the auto ABS circulating during the session, SCI's PriceABS data shows that US$5.28m in face of the AMOT 2011-1 A1 tranche was covered at .......

    News Round-up 7 August 2012

  • Enhanced granularity offered

    Interactive Data Corporation has enhanced the FINRA-Interactive Data structured trading aggregate reports available in Vantage, its web application. With additional layers of granularity, financial institutions can now obtain a more complete view of trading activity related to securitised products, the company says.

    A new agency hybrid ARMS trade reporting summary and more granular trading tables are now available via Vantage. .......

    News Round-up 7 August 2012

  • Junior SIV ratings hit

    S&P has lowered its credit ratings on all of Mazarin Funding's junior senior notes. These rating actions include the correction of an administrative error on the series 2010-21 junior senior notes. At the same time, the agency has affirmed all of the SIV's A-1+ short-term ratings on the commercial paper programmes and repurchase agreement notes and the triple-C minus ratings .......

    News Round-up 6 August 2012

  • Italian sovereign ceiling lowered

    Moody's has downgraded to A2 the ratings of 257 securities across 169 Italian ABS and RMBS. It has also placed on review for downgrade the ratings of 83 Italian ABS and RMBS securities and confirmed the ratings of four Italian RMBS securities.

    The rating downgrades follow Moody's decision to lower the Italian country ceiling to A2, in connection with its .......

    News Round-up 3 August 2012

  • Uncertainty weighs on European structured finance

    The marked divergence seen either side of the Atlantic in structured finance issuance volume trends in 1Q12 continued throughout Q2, according to the latest SCI league tables for bank arrangers in the structured credit and ABS markets.

    The 2Q12 SCI league tables show that sovereign and economic uncertainty are continuing to hold back supply and demand for European paper. Half-year .......

    News Round-up 1 August 2012

  • Auto losses hit new low

    Prime auto annualised net losses (ANL) dropped by 22% in June over May to a new record low of 0.14%, according to Fitch. This was mainly driven by the strong 2010-2012 driving performance as the weaker 2008-2009 transactions have mostly paid off.

    Prime delinquencies were stable in June, with 60+ delinquencies up by just 2bp to 0.40% from 0.38% in .......

    News Round-up 30 July 2012

  • Euro ABS treading water

    The summer was expected to be quiet for European ABS and that is how it has proved so far. The last week has not seen a lot of activity, although that is not down to a lack of potential buyers.

    "There is a lot of buying interest in the market right now, but it is not translating into a lot .......

    Market Reports 26 July 2012

  • Dryrock sheltered by safe harbour

    Barclays Bank Delaware (BBD) has established a new US credit card ABS programme, Dryrock Issuance Trust, which is expected to boost volumes in the sector. Dryrock will also be the first credit card ABS trust to issue under the FDIC's safe harbour rule that was adopted on 27 September 2010.

    The rule provides issuers with more flexibility to amend trust .......

    News Round-up 26 July 2012

  • APRA first-loss rule welcomed

    Moody's has welcomed the Australian Prudential Regulation Authority's (APRA) requirement for banks to deduct from their common equity Tier 1 holdings subordinated tranches of securitisations originated by a third party. The rating agency suggests in a recent Credit Outlook publication that such a conservative measure will support bank stability by ensuring there is adequate capital to cover first-loss positions.

    The .......

    News Round-up 24 July 2012

  • ABS expectations

    Quarterly review and outlook for European consumer/credit card ABS

    We asked Lloyds Bank, the winners of SCI's 2011 arranger award for European consumer/credit card ABS, its views on activity in Q2 and expectations for Q3 in the sector. Below are SCI's questions and the responses from Robert Plehn, md, head of asset backed solutions, Lloyds Bank Wholesale Banking & Markets.

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

    News Analysis 24 July 2012

  • Mezz ABS fund minted

    Prytania Investment Advisors has launched the Galene Fund, an actively managed fund focusing on investment grade structured finance assets. It aims to build a diversified portfolio generating a stable yet attractive return in excess of 450bp over one-month Euribor per annum.

    The fund seeks to exploit the attractive risk-adjusted return of ABS through relative value opportunities, mispriced risks and identification .......

    News Round-up 23 July 2012

  • Italian sovereign-linked ratings hit

    Moody's has downgraded the ratings of 11 tranches in seven Italian ABS, due to their direct linkage to the ratings of the Italian sovereign and sub-sovereigns. The move follows the downgrade of Italy to Baa2 from A3 on 13 July and subsequent downgrades of 23 sub-sovereign entities on 16 July.

    The Italian government and several of the downgraded Italian regions .......

    News Round-up 23 July 2012

  • AESOP modelling error corrected

    Moody's has upgraded Avis Budget Rental Car Funding series 2010-6 variable funding notes to Aa2 from A1, following a correction to its rental car ABS model. The correction has no impact on any other outstanding classes or series of other rental car ABS, however.

    During the course of an internal review, Moody's discovered that the model erroneously applied a haircut .......

    News Round-up 23 July 2012

  • PCS Secretariat makes appointment

    Mark Lewis has become md at the PCS Secretariat in London. He was previously global head of structured capital markets at UniCredit.

    Lewis spent a decade at UniCredit working across Europe, the US, Asia and Australia. He will now work under Ian Bell, who was named Secretariat head last month.

    .......

    Job Swaps 20 July 2012

  • Credit card settlement could hurt ABS

    Credit card ABS could be negatively affected by a recent agreement between credit card companies and merchants which accept card payments, according to Fitch. The agreement saw card companies agree to pay US$6.05bn to merchants and cut the fees merchants pay on credit card transactions for eight months.

    The agreement also allows merchants to introduce surcharges for paying by credit .......

    News Round-up 18 July 2012

  • Tobacco tranches on rating watch

    Fitch has updated its US tobacco settlement ABS criteria and placed 150 of the 230 tobacco tranches it rates onto rating watch negative. The agency expects to resolve these watches within a month, with most downgrades expected to be one or two notches.

    The new criteria updates Fitch's base case assumption for the annual change in the master settlement agreement .......

    News Round-up 17 July 2012

  • APAC upgrades outnumber downgrades

    Fitch reports that APAC structured finance upgrades outnumbered downgrades in 2Q12 for the first time in two years. There were 24 upgrades, four downgrades and 267 affirmations during the quarter.

    The upgrades were predominantly driven by stronger-than-expected asset performance and increased available credit enhancement in Australia and India. The limited downgrades in the quarter were mostly to distressed tranches of .......

    News Round-up 12 July 2012

  • CLO specialist joins law firm

    Perry Sayles has joined McDermott Will & Emery in New York. He becomes financial institutions partner.

    Sayles has broad experience of derivatives, securitisation and structured products transactions as well as traditional corporate finance, project finance and acquisition finance. He specialises in CLOs and CDOs.

    .......

    Job Swaps 12 July 2012
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