ABS

  • Indian ABS stable, despite slower growth

    Fitch attributes the stable performance of Indian ABS transactions despite moderating economic growth in the country to the robust performance of the underlying transactions.

    The agency reports that there has been a substantial build-up of credit enhancement across all asset classes driven by the robust performance of the fully amortising underlying loans. This led to the upgrade of 18 tranches .......

    News Round-up 30 November 2011

  • Negative outlook for US-linked deals

    Fitch says it expects to revise the rating outlook to negative for certain US structured finance ratings as a result of the change in the US sovereign's rating outlook to negative from stable. For deals that benefit from guarantees or insurance from the US government, the agency expects to revise its rating outlook on triple-A rated classes to negative from .......

    News Round-up 30 November 2011

  • OCC proposes ratings rule

    The OCC has proposed a rule to remove references to credit ratings from its non-capital regulations and related guidance to assist national banks and federal savings associations in meeting Dodd-Frank due diligence requirements in assessing credit risk for portfolio investments.

    In particular, the OCC proposes to amend the definition of "investment grade" in 12 CFR Part 1 to no longer .......

    News Round-up 30 November 2011

  • Law firm names partners

    Sullivan & Cromwell has elected new partners to the firm, including William Monahan and Amanda Davidoff. They will assume their new roles on 1 January 2012.

    Monahan is currently an associate at the firm, based in New York. His practice focuses on representing clients and individuals at trial and on appeal, including complex securities class and derivative actions.

    Davidoff is .......

    Job Swaps 30 November 2011

  • Portuguese ratings cap revised

    Fitch has downgraded 51 tranches (comprising 46 RMBS, four structured credit and one ABS) and affirmed 24 tranches (23 RMBS and one structured credit) of 36 Portuguese structured finance transactions. Of these deals, 31 are RMBS, four are structured credit and one is ABS. Additionally, the rating watch negative on 51 tranches has been removed, while six tranches of two .......

    News Round-up 25 November 2011

  • Global securitisation volumes strong in October

    At the end of October 2011, with just under US$225bn and €80bn of qualifying securitisation deals completed, the leaders maintained their places in the SCI league tables for bank arrangers in the structured credit and ABS markets. Most added to their accounts as the US and European markets saw above average issuance of US$24.6bn and €11.4bn respectively for the month.

    News Round-up 25 November 2011

  • New treasurer at Fifth Third

    Fifth Third Bancorp has appointed svp Tayfun Tuzun as treasurer, effective from 2 December. Tuzun replaces Mahesh Sankaran, who is joining M&T Bank as director of finance.

    Tuzun is currently Fifth Third's assistant treasurer and balance sheet manager, overseeing investment portfolio activities and balance sheet strategy. Before that he was structured finance manager at the bank. Prior to joining Fifth .......

    Job Swaps 23 November 2011

  • Bank names new SF head

    Crédit Agricole has promoted Jacques Prost to head of structured finance, replacing Jean-Francois Marchal. Prost is based in Paris and reports to Pierre Cambefort, deputy ceo.

    Prost's previous role was head of real estate and lodging within Crédit Agricole's SF division. He has also served as head of SF for Crédit Agricole Indosuez in Italy, head of project finance in .......

    Job Swaps 23 November 2011

  • Auto ABS RFC released

    Kroll Bond Rating Agency (KBRA) is seeking public comment on its US auto loan ABS rating methodology.

    KBRA's rating of an auto loan ABS transaction addresses: the quality and expected performance of the underlying collateral; the originator and servicer's business model and operational strength; and the transaction terms, including the capital structure, credit enhancement and legal structure. The agency says .......

    News Round-up 23 November 2011

  • IO RFC issued

    Moody's is seeking comment on its proposed global rating framework for interest-only securities (IOs) applicable to US RMBS, US and European CMBS and US ABS.

    The proposals reflect the results of extensive analysis into the meaning of the IO rating and how to better align IO ratings with the agency's traditional expected loss ratings framework. These changes have the aggregate .......

    News Round-up 23 November 2011

  • Private SLABS defaults to remain elevated

    According to Moody's Private Student Loan Indices, 4.8% of securitised private student loans defaulted in 3Q11, unchanged from the rate in the second quarter. Although stable, the default rate index will remain more than twice its average run rate before the recession through 2012, the agency says.

    "High unemployment, rising debt and declining income means obligors will continue having difficulty .......

    News Round-up 23 November 2011

  • Unique strategy mooted

    In an investor call yesterday, Enterprise discussed the methods it is considering to mitigate a financial covenant breach in the Unique securitisation once the fixed rate debt starts to amortise in 2014.

    The firm stated it could change the beer supply and management service agreements, thereby injecting around £42m further EBITDA into the transaction. This would ensure that the DSCR .......

    News Round-up 23 November 2011

  • SIV ratings downgraded

    Moody's has downgraded the ratings of the US CP, Euro CP and MTNs issued by the Carrera Capital and Harrier Finance SIVs and from P-1 to P-2.

    The SIVs are managed and sponsored by HSH Nordbank and Brightwater Capital Management, a wholly owned subsidiary of WestLB. There is a direct linkage between the SIV ratings and those of their sponsors, .......

    News Round-up 22 November 2011

  • Lower growth projections weigh on WBS

    S&P reports that the UK corporate securitisations it rates have generally performed in line with expectations, as reflected in their business risk profiles and the agency's stresses. However, the pub sector has felt the strain of the economic downturn more than other sectors, it says.

    S&P notes that trading conditions for the pub sector remain difficult. Operating performance among tenanted .......

    News Round-up 22 November 2011

  • Derivative obligations criteria revisited

    S&P is requesting comments on its proposed expansion to its methodology and assumptions for assessing derivative obligations and specific amendments to other aspects of the criteria for counterparty and supporting party risk.

    For derivative obligations, the proposed criteria consider different combinations of minimum counterparty ratings and collateral amounts so that the higher the minimum counterparty rating, the lower the collateral .......

    News Round-up 21 November 2011

  • Charge-offs hit post-crisis low

    US credit card charge-offs fell by 6bp in October to 5.21%, which is the lowest level for charge-offs since 2007, according to the latest Moody's Credit Card Indices results. The agency expects charge-offs to continue to decline well into 2012, pushing the rate to below 4% by the end of that year.

    "Following the sizable 75bp decline in the charge-off .......

    News Round-up 21 November 2011

  • New SF recovery metric in use

    Fitch has begun using a recovery estimate (RE) metric for distressed structured finance securities. The new metric is complementary to the agency's long-term ratings and replaces its recovery ratings (RR) for the sector.

    RE is a forward-looking recovery estimate based on Fitch's expectations for principal repayments, which will be maintained and updated as the credit ratings of the associated securities .......

    News Round-up 21 November 2011

  • Italian ratings ceiling confirmed

    Fitch reports that if the Italian government was downgraded below single-A minus, Italian structured finance transactions would not be able to achieve or maintain triple-A ratings. The agency reiterates that it applies a cap of at most six notches to the uplift that a securitisation rating in a eurozone country can achieve above the relevant country's local currency IDR.

    Fitch's .......

    News Round-up 18 November 2011

  • Malaysian securitisation inked

    The Malaysia Building Society (MBSB) has signed an RM1bn agreement with Cagamas to proceed with a recourse securitisation of personal financing receivables and conventional mortgage assets. The transaction was facilitated by Maybank, Affin Bank, RHB Bank and AmBank.

    This is MBSB's second fund-raising exercise with Cagamas in the last three years. The last agreement was signed in 2009 for RM1bn.

    News Round-up 17 November 2011

  • ED share placement underway

    European DataWarehouse (Management) Limited has appointed Perella Weinberg Partners to arrange a placement of its shares. This represents the next stage in the creation of an independently-owned ABS central data repository, pursuant to the ECB's call for a market-driven solution, the firm says.

    The placement will target market participants, with the intention of ensuring that ED has a broad, diverse .......

    News Round-up 16 November 2011

  • Euro ABCP responding to regulatory requirements

    S&P reports that the European ABCP sector is responding to increased regulation from national and supranational bodies, in particular the Basel 3 requirements. Specifically, conduits are making structural modifications to their programmes to meet new liquidity requirements.

    The inclusion of unrated trade receivables sellers continues to account for the majority of conduits' new seller activity. By contrast, their holdings of .......

    News Round-up 16 November 2011
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