ABS

  • Private SLABS at risk

    The New York Fed recently reported that as many as 27% of all US student loan borrowers are more than 30 days past due, with recent estimates suggesting that US$900bn-US$1trn of student loans are outstanding. Fitch believes that the recent increase in past-due and defaulted student loans presents a risk to investors in private student loan ABS, but not those .......

    News Round-up 23 March 2012

  • ILS specialists switch firms

    Willkie Farr & Gallagher has hired a team of 12 insurance transactional and regulatory lawyers. The team joins from Dewey & LeBoeuf and will continue its ILS work from Willkie's New York, London and Washington DC offices.

    The team is led by Alexander Dye, Michael Groll, Robert Rachofsky and John Schwolsky. It represents insurance companies, investment banks, sponsors and other .......

    Job Swaps 22 March 2012

  • Card charge-offs hold steady

    US credit card charge-offs held steady in February, as the charge-off rate index fell 1bp below its January level to 4.97%, according to Moody's Credit Card Indices. The agency expects the charge-off rate to start falling in the coming quarter and end 2012 at about 4%.

    The delinquency rate index also declined, by 7bp to 2.86%, setting yet another all-time .......

    News Round-up 22 March 2012

  • Auto ABS losses hit new low

    US prime auto ABS losses dropped to a new record low last month, according to Fitch's latest index results for the sector.

    Prime annualised net losses (ANL) dropped by 28% in February to 0.38%, down from 0.53% in January and 57.8% better year-over-year (YOY). This compares to the prior low of 0.41% in June 2011.

    Used vehicle values have been .......

    News Round-up 19 March 2012

  • Typhoon cat bond launches

    A new Japanese wind and storm catastrophe bond is being marketed by Swiss Re Capital Markets - Akibare II.

    Swiss Re will be the counterparty to the risk transfer contract but the US$90m single-tranche deal will ultimately provide protection to the reinsured - Mitsui Sumitomo Insurance. The deal will be exposed to typhoons and tropical storms in Japan between March .......

    News Round-up 13 March 2012

  • ILS team, funds acquired

    LGT Group is buying Clariden Leu's ILS business. A team of 10 specialists and the Clariden Leu (CH) Cat Bond Fund, Clariden Leu (Lie) Cat Bond Fund, Clariden Leu (Lux) - Cat Bond Fund and Clariden Leu (Gue) ILS Plus Fund will be transferred to LGT Capital Management as part of the deal.

    The acquisition increases LGT Capital Management's AUM .......

    Job Swaps 13 March 2012

  • Allianz cat bond marketing

    Swiss Re and GC Securities are marketing a catastrophe bond from a new Allianz programme - Blue Danube.

    The as yet unsized series 2012-1 class A and B notes will be exposed to US, Caribbean and Mexico hurricane risk; and US and Canada earthquake risk between 3 April 2012 and 2 April 2015. S&P has given the deal's notes preliminary .......

    News Round-up 13 March 2012

  • Willis appoints Europe md

    Andrea Bellone has joined the European team of Willis Capital Markets & Advisory as md. He is based in London and reports to Michiel Bakker, head of WCMA Europe.

    Bellone is now responsible for WCMA clients in continental Europe, with a particular emphasis on Italy. He joins from Leadenhall Capital Partners and has 18 years of experience in insurance and .......

    Job Swaps 12 March 2012

  • East Lane Re V upsizes

    The fifth catastrophe bond from Chubb's East Lane programme has closed with its junior tranche upsized. East Lane Re V's series 2012 class A and class B notes initially targeted US$75m and US$50m (SCI 22 February 2012), but the class Bs ended up at US$75m

    The four-year deal priced at 900bp over Treasury money market funds for the class A .......

    News Round-up 12 March 2012

  • German set-off risk warning

    A series of higher regional court decisions regarding loan handling fees for German consumer loans could expose securitisations to additional set-off risk. Fitch says it will review the potential impact on existing ratings on a transaction-by-transaction basis.

    The court rulings invalidate administration fees that were charged to set up a loan. The risk to German ABS transactions is that borrowers .......

    News Round-up 8 March 2012

  • Capex concerns

    UK water companies to return to securitisation

    The UK Environment Agency has put the South East of England on drought status, with reservoir levels in the region already 20% lower than normal. To help fund additional capital expenditure - both to mitigate the impact of the drought and to manage long-term operating costs - a number of water companies are expected to tap the securitisation market this .......

    News Analysis 7 March 2012

  • Trading vet resurfaces

    Alan Packman has joined Knight Capital Group as head of structured credit trading. Packman was most recently at UBS Investment Bank, where he was head of CDO trading for Europe.

    The trader has considerable experience across structured finance and has previously worked at Aladdin Capital Management, Hoare Capital Markets, Dresdner Kleinwort, Lloyds TSB and WestLB trading ABS, MBS, CDOs and .......

    Job Swaps 6 March 2012

  • Mystic Re III closes

    Liberty Mutual's Mystic Re III (SCI 14 February 2012) has closed providing US multi-peril cover totalling US$275m. The two tranche deal is 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 US$100m series 2012-1 class A notes priced at 900bp over Treasury money market .......

    News Round-up 5 March 2012

  • 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
×