ABS

  • US consumer ABS to see 'exceptional stability'

    Traditional US consumer ABS ratings have demonstrated and will maintain exceptional stability, should the economy double-dip back into recession, according to Fitch.

    Analysis by Fitch shows that roughly 99% of all investment grade US credit card ABS either stayed investment grade, were upgraded or paid in full between summer 2007 and the middle of this year. In addition, some 95% .......

    News Round-up 26 September 2011

  • Card delinquencies at all-time low

    The credit card delinquency rate reached a new all-time low in August, with only 3.04% of balances 30-days or more past due. Credit card charge-offs also decreased by 7bp from July to 6.02%, according to Moody's Credit Card Index.

    The delinquency rate has been declining for 22 months and is now less than half the 6.23% seen in October 2009. .......

    News Round-up 26 September 2011

  • Conflicts of interest examined

    Fitch considers the alignment of interest between transaction parties and structured finance investors to be critical to a transaction's performance. In fact, the agency says it views this alignment as a significant part of the qualitative element of its rating criteria.

    The US SEC's proposed rule (SCI 20 September) is intended to prohibit certain material conflicts of interest between those .......

    News Round-up 23 September 2011

  • Boutique bolsters FI sales

    CastleOak Securities has added Gregory Hughes and Dana Brett-Levy to its fixed income division. The pair report to Patrick de Catalogne, senior md and head of fixed income sales & trading.

    Hughes joins the firm as director, covering a diverse account base for credit, structured credit and all fixed income products. He previously developed credit trading and sales platforms at .......

    Job Swaps 22 September 2011

  • Tractor loan ABS analysed

    Fitch has analysed the key aspects that differentiate tractor loans from other asset classes and their resulting impact on Indian tractor loan ABS. The agency studied close to 80,000 loans amounting to R21.9bn, originated between 2004 to 2010 by Mahindra & Mahindra Financial Services.

    Performance of tractor loans improved significantly for the 2008-2009 vintage compared with the 2005-2007 vintage, with .......

    News Round-up 22 September 2011

  • Hong Kong corporate services team completed

    Walkers Management Services has announced that its Hong Kong team is now complete with the appointment of Michele Wan as svp with Walkers Corporate Services. Wan moves over from Walkers law firm in Hong Kong, where she worked as an associate in the firm's corporate and finance group, specialising in asset finance, acquisition finance, structured finance and debt capital markets.

    Job Swaps 21 September 2011

  • Corporate trust head appointed

    Dean Fletcher has been named regional head of BNY Mellon Corporate Trust, EMEA. He continues to report to James Maitland, head of client & business development for EMEA and Asia Pacific.

    Fletcher had been serving as co-head of EMEA for Corporate Trust with Joe Duffy. Duffy remains ceo of The Bank of New York Mellon (Ireland) and will continue to .......

    Job Swaps 21 September 2011

  • Ring-fencing expected to drive SF issuance

    Fitch believes that an increase in covered bond and structured finance issuance volumes is likely to be one of the consequences of the removal of implicit state-support for large UK banks. The creation of ring-fenced and non ring-fenced banks in the UK will likely see ring-fenced banks using structured finance debt to partly fund their assets and using covered bonds .......

    News Round-up 21 September 2011

  • SEC to tackle conflicts of interest

    The US SEC is set to propose a rule intended to prohibit certain material conflicts of interest between those who package and sell ABS and those who invest in them. The proposal, which the Commission says is not intended to prohibit traditional securitisation practices, implements Section 621 of the Dodd-Frank Act.

    The proposed rule would prohibit for a designated time .......

    News Round-up 20 September 2011

  • CIR RFC published

    Moody's has published an RFC regarding its proposed methodology for counterparty instrument ratings (CIR). A CIR addresses the expected loss posed to a counterparty in relation to the payment obligations of an SPV under a financial instrument in a structured finance transaction. In the recent past, the agency has assigned ratings to a number of interest rate and cross-currency swap .......

    News Round-up 20 September 2011

  • Expanded disclosures described

    Fitch has published a special report that describes the representations, warranties and enforcement mechanisms (RW&Es) the agency typically sees in structured finance transactions. The release of this report is part of the agency's plans to include expanded disclosure of RW&Es in global SF rating reports as a result of the SEC's adoption of Rule 17g-7 (SCI 10 August).

    Beginning on .......

    News Round-up 20 September 2011

  • Marathon names three new partners

    Marathon Asset Management has named three new partners: Stuart Goldberg and Andrew Springer, who become senior portfolio managers and co-heads of the structured credit group; and Jake Hyde, senior portfolio manager in the corporate credit group. All three have become members of the firm's executive committee.

    Springer has 24 years of experience in analysing, underwriting and purchasing mortgage assets and .......

    Job Swaps 20 September 2011

  • ABS analyst added

    Chris D'Onofrio has joined DBRS' structured finance group as an svp, focusing on ABS as a lead analyst. He was previously a partner at Cold Street Partners, where he advised middle market specialty finance clients in the subprime auto sector. Prior to that, he spent nine years at Citi, most recently as a director in the global securitised products group .......

    Job Swaps 20 September 2011

  • Securitisation leaders hold firm

    At the end of August 2011, with more than US$171bn of qualifying deals completed, the leaders maintained their places in the SCI US league tables for bank arrangers in the structured credit and ABS markets. All added to their account as the month saw US$10.9bn of issuance.

    Europe, meanwhile, saw a stronger indication of the traditionally quietest summer month, with .......

    News Round-up 19 September 2011

  • Corporate trust beefs up

    Wilmington Trust's corporate client services (CCS) business has announced the addition of five capital markets professionals to serve clients in Wilmington, Los Angeles and Dallas. The new staff members join Wilmington Trust from Wells Fargo and include John Deleray, Jeffrey Kassels, Gregory Hasty, Cam Lindsey and Mike Orendorf. The team specialises in providing traditional corporate trust and agency services for .......

    Job Swaps 19 September 2011

  • Sigma case rejected

    SIFMA - represented by Cadwalader partner Martin Seidel and associate Nathan Bull - filed an amicus curiae brief in support of JPMorgan, which the association claims vindicates the rights of multiservice financial services firms. The move was in connection with a case involving the Sigma Finance SIV.

    On 5 August, US District Judge Shira Scheindlin granted partial summary judgment to .......

    News Round-up 15 September 2011

  • Los Angeles partner recruited

    Bingham McCutchen has appointed Dan Passage as a partner in its structured transactions group based in the Los Angeles office. He has over 20 years of experience and was previously head of O'Melveny & Myers' securitisation practice. Passage has structured programmes for the origination, financing and securitisation of novel asset classes, such as life settlements, premium finance loans, annuities, patent .......

    Job Swaps 15 September 2011

  • UK SME GSE touted

    Adam Posen of the Bank of England suggested in a recent speech that the UK government establish an entity to help increase small business lending by purchasing and securitising SME loans from banks. Conceptually, the entity would be a government-sponsored institution similar to Fannie Mae and Freddie Mac in the US. Securitisations from the so-called British Enterprise Investment Entity could .......

    News Round-up 14 September 2011

  • Resolution rules adopted

    A final rule to be issued jointly by the FDIC and the US Fed to implement Section 165(d) of the Dodd-Frank Act has been approved. This provision requires bank holding companies with assets of US$50bn or more and companies designated as systemic by the Financial Stability Oversight Council to report periodically their plans for rapid and orderly resolution in the .......

    News Round-up 14 September 2011

  • CRA board proposal slammed

    SIFMA has submitted comments to the US SEC in response to a Dodd-Frank mandated study the Commission must undertake related to the assignment of credit ratings to structured financial products. The association says it strongly opposes the implementation of the 15E(w) system because it would represent an unprecedented intrusion of government control into a private financial market. Rather, it supports .......

    News Round-up 14 September 2011

  • Future ABCP growth questioned

    Traditional ABCP programmes remain sound structures post-financial crisis, though the regulatory landscape raises questions as to the prospects for growth going forward, Fitch reports.

    After reaching a high of nearly US$1.2trn in outstandings in the summer of 2007, the ABCP market nearly ground to a halt once the crisis began to take hold. While the non-traditional market value and extendible .......

    News Round-up 14 September 2011
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