Complete news archive

  • Spanish spending to boost ABS

    Stronger household spending will contribute to Spain's economic recovery and support SMEs, says Moody's. This, in turn, should benefit ABS backed by SME loans.

    Household spending grew by 2.4% in 2014, outpacing economic growth, notes Moody's. Consumer confidence is also at its highest peak in a decade.

    The rating agency notes that a positive consumer outlook is likely to keep .......

    News Round-up 27 March 2015

  • Credit quartet recruited

    Absalon Capital has launched two unconstrained credit strategies, which will be managed by four recent recruits. Klaus Blaabjerg, Toke Katborg Hjortshøj, Sune Højholt Jensen and Peter Dabros have joined the firm from Sparinvest.

    One of the funds will invest across cash bonds and convertibles with the aim of taking advantage of differences in credit spread between cash bonds and CDS, .......

    Job Swaps 27 March 2015

  • STACRs see large paydowns

    The M1 bonds of STACR 2014-DN3 and STACR 2014-HQ1 experienced a large paydown in their March remittance, according to Barclays Capital securitised products analysts. STACR 2014-DN3 M1 and STACR 2014-HQ1 M1 paid down by 18% and 8.4%, respectively.

    The large paydowns were the result of a jump in prepayments following the interest rate rally in January. While prepayment speeds jumped .......

    News Round-up 27 March 2015

  • Chinese CLOs performing well

    Chinese CLOs have performed well, says Moody's, recording a minimal number of defaults on their underlying loan assets since the market re-opened in May 2012. However, defaults are expected to rise, given that in 2H14 some low quality loans were securitised by originators.

    According to the trustee reports of Chinese CLOs, just two underlying loans, out of an aggregate of .......

    News Round-up 26 March 2015

  • CLO refinancing emerging

    After rapid spread tightening in February, CLO spread levels have stabilised over the last two weeks, says Deutsche Bank. This has prompted refinancing activity to re-emerge.

    Spreads across the investment grade part of the capital structure are now back to where they were in late July and early August of 2014. The double-B rated tranches are also getting close to .......

    News Round-up 26 March 2015

  • Aussie mortgage delinquencies dropping

    Australian residential mortgage delinquencies are at their lowest level for the country since 2006, according to Moody's. This is due to record-low interest rates, rising house prices and a relatively steady macroeconomic environment.

    As of 30 November 2014, 1.19% of residential mortgages were more than 30 days in arrears, less than the 1.24% at the end of November 2013. Mortgage .......

    News Round-up 26 March 2015

  • Asset manager majority stake purchased

    Vontobel Asset Management is set acquire a 60% stake in TwentyFour Asset Management. Together, the firms will offer clients a broader range of specialised fixed income strategies, with approximately £12bn in total fixed income assets under management.

    TwentyFour's partners will continue to manage TwentyFour's day-to-day operations, retaining full authority over fund investment decisions. In addition, TwentyFour's partners and key employees .......

    Job Swaps 26 March 2015

  • CMBS underwriting causing concerns

    US CMBS underwriting has been moderately weaker in 2015 than in 2014, particularly considering the low rate environment, say Barclays Capital analysts. As a result, they believe that single-A and double-A rated tranches offer the best risk/return value, amid continued deteriorating credit quality.

    As issuance has increased, one trend that has remained consistent is the growing share of hotel properties .......

    News Round-up 26 March 2015

  • SFR vacancies may rise

    Certificate holders of 15 single-family rental securitisations received full payment on the distribution date for this month, says Morningstar. While the agency expects that cashflows from these deals will remain sufficient to cover bond obligations in the months ahead, it notes that lease expirations are generally rising across multiple transactions, indicating that vacancies may rise in the future.

    Additionally, after .......

    News Round-up 26 March 2015

  • Hills sale loss projected

    The US$14.7m The Hills property in Dallas, Texas, has been bid at auction to a high level of US$18.1m, according to Barclays Capital securitised products analysts. Should that bid be accepted, CMBS losses would follow.

    While the property does not appear to have met a reserve price set by the seller, the bid was within range of the US$20.1m appraisal .......

    News Round-up 26 March 2015

  • Economy supporting UK auto ABS

    Improving macroeconomic and lending trends and healthy signs in the underlying auto market continue to support the UK auto ABS market, says Bank of America Merrill Lynch. New passenger car registrations continue to grow faster than most of the other major European markets, with total registrations in the 12 months up to February 2015 9.5% higher than the previous 12 .......

    News Round-up 26 March 2015

  • Bankruptcy law could add losses

    The new Spanish bankruptcy law for nonperforming, highly indebted individuals could add additional marginal losses to securitisations, says Scope Ratings. However, the agency's structured finance ratings will be unaffected.

    Last February, the Spanish government passed a royal decree, which allows for the legal extinction of marginal debts under very tight conditions once and after an insolvency process has been finalised. .......

    News Round-up 26 March 2015

  • Non-agency defaults falling

    The stabilisation of the labour and housing markets has had a positive impact on US RMBS mortgage credit across all credit spectrums, observes Deutsche Bank. The non-agency mortgage serious delinquency rate has declined 221bp year-over-year, and non-agency loans in delinquency have fallen 9% by loan balance since the 1Q10 peak.

    Housing fundamentals have also shown steady improvement, although the US .......

    News Round-up 26 March 2015

  • Proposed bill could add to SLABS risk

    The introduction in the US of the Bank on Students Emergency Refinancing Act of 2015 by Senator Elizabeth Warren and Representative Joe Courtney is the latest in a series of moves to modify the treatment of student loans in the bankruptcy process. Barclays Capital analysts believe this could pose headline risks for student loan ABS and could act as a .......

    News Round-up 26 March 2015

  • Euro investors weigh UK opportunities

    European investors are increasingly looking beyond euro-denominated assets in the search for yield. UK pound-denominated ABS is up 69% from last year and accounts for over a quarter of total placed European issuance year-to-date.

    New lending by challenger banks and the ECB-induced scarcity of high-yielding assets have improved UK issuance prospects. If investors do rotate from low yielding euro assets .......

    News 26 March 2015

  • Credit card issuance starts slowly

    US credit card ABS supply so far this year is half what it was at the same time in 2014, but this is anomalous for US ABS as a whole, as JPMorgan figures put non-card ABS supply at US$46.4bn for the year so far, having only hit US$38.5bn in the same period of 2014. By contrast, credit card ABS supply .......

    News 26 March 2015

  • US CLOs trade sideways

    Despite maintaining a broadly positive tone the US CLO secondary market is currently trading sideways as oil price concerns are again weighing heavily on the lower part of the capital stack.

    "Overall the market is moving sideways now, but there continues to be manager and sector tiering thanks to the oil price moves," says one trader. "Consequently, the lower part .......

    SCIWire 25 March 2015

  • Irish prime RMBS stabilising

    The Irish prime RMBS market continued to stabilise in the three-month period ended January, according to Moody's latest index results for the sector. Arrears levels have decreased at both early and late stages on both a quarterly and annual basis, and 90-plus day delinquencies decreased to 17.5% of the outstanding balance in January from 18.6% in October 2014.

    The 360-plus .......

    News Round-up 25 March 2015

  • Euro CLOs relying on natural hedges

    New European broadly syndicated loan (BSL) CLOs increasingly rely on natural hedges, suggests Moody's. The agency says that BSL CLO deal structures increasingly rely on natural hedges against interest rate fluctuations by issuing fixed-rate tranches in amounts that match their expected holdings of fixed-rate assets.

    "All 2014-vintage CLOs have purely euro-denominated liabilities and use perfect asset swaps, or other derivative .......

    News Round-up 25 March 2015

  • ABS CDO manager switched

    Rabobank International has resigned from its role as the collateral manager for Solstice ABS CDO III and designated Dock Street Capital Management as the replacement manager. Fitch says the terms of the proposed replacement collateral management agreement have remained almost identical, with only minor differences that are not material to the ratings of the transaction.

    For other recent CDO manager transfers, see .......

    Job Swaps 25 March 2015

  • Tax impact 'limited' on Japan auto ABS

    A 50% increase in Japan's ownership tax for mini-vehicles from April to ¥10,800 (US$90) a year will have a limited impact on the performance of new auto loan ABS, says Moody's. Although mini-vehicles account for approximately 40% of new car sales in 2014 in Japan, the agency says that the tax amount is still relatively low.

    Furthermore, Moody's says that .......

    News Round-up 25 March 2015
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