ABS

  • Cards from abroad

    US investors hungry for UK credit card ABS

    Barclays last week priced its latest UK credit card ABS, with the largest tranche denominated in US dollars. US accounts are increasingly looking to invest in UK credit card paper for several reasons and that interest is expected to continue.

    Barclays' Gracechurch Card Programme Funding 2012-1 - whose US$450m 2.93-year class A1 notes printed at 70bp over one-month Libor - .......

    News Analysis 5 March 2012

  • Container ABS performance indicators outlined

    Recent results reported by shipping companies can act as a potential indicator of future container ABS performance, Fitch notes.

    Maersk, for example, reported this week that its 2011 profits were diminished by challenges in container shipping. While the firm shipped 11% more containers, lower shipping rates - combined with higher fuel costs - pushed its liner business to a loss. .......

    News Round-up 2 March 2012

  • Auto ABS criteria published

    Kroll Bond Rating Agency (KBRA) has released its methodology for rating auto loan ABS, following its request for comment last November (SCI 23 November 2011). The new methodology contains no substantive changes to the methodology described in the RFC.

    KBRA says its rating of an auto loan ABS transaction addresses the quality and expected performance of the underlying collateral; the .......

    News Round-up 2 March 2012

  • Queen Street V closes

    Munich Re's latest catastrophe bond Queen Street V Re (SCI 10 February) has closed. The US$75m deal covers major North Atlantic hurricane risk between April 2012 and March 2015 and major European windstorms between October 2012 and March 2015.

    The transaction's single tranche priced at 850bp over Treasury money market funds. It is rated single-B plus by S&P.

    Munich Re .......

    News Round-up 28 February 2012

  • Credit card delinquencies hit record lows

    US credit card charge-offs declined to 4.98% in January, the lowest level since November 2007, according to Moody's Credit Card Indices. Early-stage delinquencies also fell to new record lows, pointing to further declines in charge-offs in the months ahead.

    Moody's expects the charge-off rate to continue to fall well into the coming year, eventually moving to below 4% by the .......

    News Round-up 27 February 2012

  • East Lane Re V marketing

    The fifth catastrophe bond from Chubb's East Lane programme has begun marketing. The four-year two tranche deal covers losses from hurricanes and severe thunderstorms in the covered area on a per occurrence basis.

    East Lane Re V's series 2012 class A and class B notes are initially targeting US$75m and US$50m, respectively. S&P has given the class As a preliminary .......

    News Round-up 22 February 2012

  • Lebanese auto deals closed

    BSEC - Bemo Securitisation recently closed two Lebanese securitisations. The transactions will finance the business growth of two local companies, both operating in the auto sector.

    The first deal - dubbed Gear 1 SIF - is a true sale operating lease securitisation arranged on behalf of MECAR/Avis Lebanon. It comprises two classes of notes: class As that have an expected .......

    News Round-up 21 February 2012

  • NY law firm hires auto ABS specialist

    Christopher Horn has joined Baker & McKenzie as a partner in the firm's New York office. He was most recently a partner at Mayer Brown.

    Horn represents both issuers and underwriters on structured finance transactions and specialises in the securitisation of auto receivables. He also has considerable experience in ILS, including catastrophe risk bonds and life insurance reserve funding facilities.

    .......

    Job Swaps 21 February 2012

  • Innovative whole business deal prices

    Center Parcs has priced its £1.2bn whole business securitisation, CPUK Finance. The transaction has a number of noteworthy features.

    Rated by Fitch and S&P, CPUK Finance comprises two tranches of triple-B notes. The £300m five-year class A1 notes printed at 390bp over Gilts, while the £440m 12-year class A2s came at 465bp over. The deal was arranged by Barclays Capital, .......

    News Round-up 20 February 2012

  • ILS chief to head US operations

    Liz Frederick has been made md of Kane (USA), effective from March. Frederick is currently global practice head for Kane's ILS business and will continue to perform this role in tandem with running US operations.

    Frederick is currently based in the Cayman Islands. She has extensive experience in the structuring and management of a range of ILS and captive structures, .......

    Job Swaps 16 February 2012

  • Container ABS ratings ceiling mooted

    New US container ABS transactions are seeing a resurgence following a three-year lull, Fitch notes. But the agency warns that the sector remains susceptible to a high degree of systemic, industry and specific credit risks.

    Fitch expects more new container deals over the course of this year as economic growth returns and industry funding needs increase. Performance of existing container .......

    News Round-up 15 February 2012

  • SF vet joins Analysis

    John Richard has joined Analysis Group as an affiliate. Richard's investment expertise spans unsecured corporate credit and securitisations. He was a founder of the distressed CMBS Taurus Horizon Fund and previously served at State Street Global Advisors as a senior fixed income portfolio manager.

    .......

    Job Swaps 15 February 2012

  • Proprietary credit scores tested against FICO

    S&P recently compared the relative value of proprietary credit scores with FICO scores to see which was better at gauging the future performance of subprime auto ABS transactions.

    FICO scores are common measures of creditworthiness, but they primarily reflect borrowers' prior credit behaviour. According to Amy Martin, a senior director in S&P's ABS ratings group, many subprime auto finance companies .......

    News Round-up 14 February 2012

  • Mystic Re III on the blocks

    Aon Benfield Securities and Swiss Re Capital Markets are marketing the third deal from Liberty Mutual's Mystic Re catastrophe bond programme, the first since 2009. The two-tranche deal will be based on the ultimate net losses of the ceding insurer from US hurricanes and earthquakes, including fire following, on a per-occurrence basis.

    Mystic Re III's series 2012-1 class A notes .......

    News Round-up 14 February 2012

  • Legal team moves on

    Chapman and Cutler has recruited six partners for its newly-established office in Washington DC. Felicia Graham, Douglas Madsen, Michael Mitchell, Mark Riccardi, Craig Fishman and Rachel George all join from Orrick, Herrington & Sutcliffe.

    All six attorneys have significant structured finance practices. Graham represents clients in ABCP transactions, asset-backed financings and structured products. She also has a longstanding practice as .......

    Job Swaps 14 February 2012

  • Cat bonds on the up

    Thierry Berthold, co-head of insurance and European structur...

    There is good reason to be optimistic for the catastrophe bond market in 2012, particularly in Europe. Asset managers are showing an increasing willingness to accept cat bonds as a viable asset class and the increase in new capital via dedicated ILS funds is likely to continue, as experienced in 2011.

    This should maintain the virtuous circle, with more capital .......

    Talking Point 10 February 2012

  • Latest Queen Street issue marketing

    Munich Re is in the market with its latest catastrophe bond - the US$75m Queen Street V Re. Rated single-B plus by S&P, the notes will be exposed to major North Atlantic hurricane risk in selected US states between April 2012 and March 2015 and major European windstorms between October 2012 and March 2015.

    Munich Re will be the cedant .......

    News Round-up 10 February 2012

  • FFELP SLABS ratings lowered

    S&P has lowered its ratings on 87 classes of bonds from 29 FFELP student loan ABS transactions issued between 2003 and 2007 by Sallie Mae. At the same time, the agency affirmed its ratings on 50 senior classes of bonds from the same transactions. It also removed its ratings on all the classes from credit watch, where they were placed .......

    News Round-up 8 February 2012

  • Kibou doubles up

    The Japanese earthquake catastrophe bond Kibou has closed at twice the originally envisaged size. The deal issued on behalf of risk counterparty Hannover Re and reinsurer Zenkyoren - Japan's National Mutual Insurance Federation of Agricultural Cooperatives - finished up at U$300m having begun marketing at US$150m (SCI 16 January 2012).

    Kibou's single tranche series 2012-1 class A notes priced at .......

    News Round-up 7 February 2012

  • Embarcadero Re closes

    The second catastrophe bond from the California Earthquake Authority's (CEA) Embarcadero Re programme (SCI 20 January 2012) has closed.

    The single-tranche US$150m transaction priced at 725bp over Treasury money market funds. S&P has rated the deal double-B minus.

    Embarcadero Re series 2012-I is based on CEA's ultimate net losses. CEA policies do not cover certain perils usually included in earthquake .......

    News Round-up 7 February 2012

  • Enterprise sale boosts Unique bonds

    Enterprise Inns has sold 15 pubs, located across the west and south east of England, for £23m to Fullers based on a multiple-to-net income of 13.5x. Given that the pubs appear to have been bought for their trading potential rather than as a real estate play, the move is expected to help improve pub valuations outside of London.

    Although Enterprise .......

    News Round-up 3 February 2012
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