ABS

  • Irish SF ratings on review

    S&P has placed or kept on credit watch negative credit ratings on 36 tranches of 14 Irish securitisations. The move is due to the agency's updated assessment of the amounts the Irish government is set to borrow to fund further bank capital into its banking system.

    Specifically, the agency has placed the triple-A ratings in five Irish RMBS transactions on .......

    News Round-up 8 December 2010

  • Mixed outlook for student loan ABS

    Moody's outlook for private student loan securitisations is negative for 2011, as high unemployment shows no signs of abating and is striking recent college graduates particularly hard. However, the outlook for the vast majority of outstanding FFELP securitisations is stable, as their servicing and administration remain mostly strong - despite FFELP being discontinued after 30 June.

    Among private student loan .......

    News Round-up 8 December 2010

  • US credit card issuance set to improve

    The performance of US credit cards is expected to improve in 2011, with charge-offs falling below 7%, according to Moody's. The agency also anticipates a rise in credit card ABS new issuance volumes, but expects levels to remain far below those of earlier in the decade.

    Delinquencies have improved throughout 2010 combined with better roll rates, Moody's says, with lower delinquencies .......

    News Round-up 8 December 2010

  • Portuguese SF ratings on review

    S&P has placed the triple-A, double-A plus and double-A credit ratings on 81 tranches in 52 Portuguese securitisations on credit watch negative. The move is due to the agency's updated assessment of the increased risks to Portugal's creditworthiness in light of the uncertainties around the implementation of the proposed EU treaty change.

    Specifically, the agency has placed 55 tranches in 37 .......

    News Round-up 8 December 2010

  • US structured finance 'turning the corner'

    With the economic recovery slowly underway, Fitch expects the US structured finance market to turn the corner towards stability next year. Additionally, from a new issuance perspective, the agency says that 2011 will bring an increased amount of transactions that continue to employ a 'back-to-basics' approach.

    Kevin Duignan, Fitch group md, says: "New structured finance deals will see continued improvement in .......

    News Round-up 8 December 2010

  • Agency responds to NAIC request

    In response to a request from the National Association of Insurance Commissioners (NAIC)'s valuation of securities task force, Moody's has published extra information for certain securities. The majority of the securities fall under the agency's definition of a structured finance security, it says.

    The additional items of information are: CUSIP number; security description; ratings as of date of list generation .......

    News Round-up 7 December 2010

  • Investors push FGIC restructuring plan

    Investors holding RMBS, ABS and municipal bonds guaranteed by FGIC have formed a policyholder group in the wake of the monoline's unsuccessful exchange offer, which expired on 22 October. The group intends to negotiate a restructuring plan with FGIC in the coming weeks and has formed a steering committee to lead negotiations.

    The steering committee and FGIC expect to come .......

    Job Swaps 7 December 2010

  • UK credit card performance improves

    Fitch reports that the performance of UK credit card trusts has improved in the third quarter of 2010 - driven by lower charge-off rates and a stabilisation of delinquency rates. However, yield rates and monthly payment rates trended lower in this period, the agency confirms.

    Fitch's charge-off index fell significantly to 7.5% at end-3Q10 from 10.5% at end-2Q10. The decline was .......

    News Round-up 6 December 2010

  • Grey-zone ABS methodology updated

    Moody's has revised its rating methodologies for Japanese credit card receivables and consumer finance loan ABS. Additionally, the agency has explained its view on dilution risk for an underlying asset due to recalculations for Japanese ABS backed by loan receivables involving payments of grey-zone interest.

    On 31 October Takefuji Corporation said it would recalculate the principal amount of its loan .......

    News Round-up 6 December 2010

  • 'Significant improvement' for Canadian ABS

    Following several years of limited term issuance, 2010 has brought significant improvement in the Canadian securitisation market, according to S&P. This momentum is occurring even as various government support programmes - which lowered funding costs and replenished liquidity - have wound down.

    "Although issuance has varied among different sectors and asset classes, we believe that the Canadian securitisation market will .......

    News Round-up 3 December 2010

  • Servicer ongoing concern risk analysed

    Fitch believes the elimination of the US FFELP can cause an ongoing concern risk for certain student loan issuers/servicers that have predominantly existed for the purpose of purchasing, originating and servicing FFELP loans. The agency says that these developments pose additional risks to transactions serviced by such entities and could have a negative impact on future rating performance, absent any .......

    News Round-up 3 December 2010

  • Counterparty risk criteria outlined

    S&P has updated its methodology and assumptions for assessing counterparty and supporting obligations. The updated counterparty criteria apply to all new and existing structured finance securities on a global basis and to certain US public finance securities, the agency says.

    The foundation of the updated criteria is the replacement of a counterparty when its creditworthiness deteriorates and falls below a .......

    News Round-up 3 December 2010

  • Lessons learnt in Dutch bank collapse

    The collapse of Dutch consumer lending bank DSB in October 2009 contains valuable lessons for the recovering international securitisation market, according to a new report by Bishopsfield Capital Partners. The report highlights that although many structural features of DSB securitisations held firm, issues related to the legal status of direct debits, borrower notification, commingling and set-off of risk caused unexpected .......

    News Round-up 2 December 2010

  • Structured finance partner recruited

    SNR Denton has appointed Thomas Parachini as partner in its banking and finance department, based in London. Parachini joins from Ford Motor Credit Company, where he was managing attorney for treasury/capital markets and assistant company secretary. Prior to this, he was a member of the structured finance team at Thacher Proffitt & Wood in New York, where he represented issuers .......

    Job Swaps 2 December 2010

  • Japanese broker-dealer established

    StormHarbour Partners continues its international expansion with the launch of a broker-dealer in Tokyo, StormHarbour Japan. The new firm has been established through the integration of NSH Securities and will be led by Michimasa Naka, ceo and managing principal. Naka has over 20 years of investment banking and global markets experience, and most recently was deputy president and head of .......

    Job Swaps 1 December 2010

  • Canadian ABS reform considerations put forward

    A new report released by the C.D. Howe Institute offers suggestions, from a Canadian perspective, about how to restore a healthy ABS market. It calls for a policy approach that reflects Canadian market realities, indicating that while enhanced transparency and better accountability regimes are welcome steps, they may constrain the return of full liquidity to the ABS market.

    The report .......

    News Round-up 1 December 2010

  • Law firm names global finance leader

    Nixon Peabody has appointed Craig Mills as leader of its global finance practice. Mills will represent both banks and other financial institutions, as well as many different types of borrowers and other users of capital in a wide range of debt finance transactions.

    Mills has experience representing clients in asset-based transactions, equipment finance transactions, mezzanine and subordinated debt facilities, workouts, .......

    Job Swaps 30 November 2010

  • Boutique adds asset advisor

    The Prytania Group has appointed Matthias Mosler as senior advisor. In this role, he will advise the firm's clients on their legacy asset positions.

    With over 25 years of industry experience, Mosler was previously at Deutsche Bank in its debt capital markets group. Prior to this, he was md in the corporate finance and capital markets group at Goldman Sachs .......

    Job Swaps 29 November 2010

  • Debt advisory md named

    Quayle Munro has appointed Stuart Roberts as md in its newly created advisory team. Based in Edinburgh, Roberts will be primarily responsible for the development of the firm's debt advisory business while assisting in building its corporate finance capability in Scotland.

    Roberts joins the firm from RBS, where he was head of structured finance in Aberdeen. Prior to this, he .......

    Job Swaps 29 November 2010

  • Flip clause validity clarified

    Ongoing uncertainty over the validity of provisions subordinating swap termination payments owed by structured finance vehicles to defaulting counterparties - known as 'flip clauses' - has no rating impact for most cashflow transactions, according to Moody's. The agency says that the validity of flip clauses is not a material consideration in relation to liquid interest rate and currency swaps that .......

    News Round-up 29 November 2010

  • Euro ABS head named

    Jefferies has appointed James Fadel as md and head of European structured debt capital markets in London. He will be responsible for the origination, execution and syndication of structured products, including MBS and ABS.

    With over 28 years of experience, Fadel spent over 12 years at Morgan Stanley in New York and London as md and head of European ABS .......

    Job Swaps 29 November 2010
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