ABS

  • China innovation paves way for securitised products

    US dollar-denominated notes backed by Chinese regional and local government (RLG) bonds have debuted in China and provide a new opportunity for offshore investment in securities traded on China's interbank bond market. Moody's believes further similar deals backed by Chinese collateral could follow, including CLOs, ABS and RMBS.

    Such US dollar-denominated bonds issued by Chinese RLGs are the first of .......

    News 15 June 2017

  • Euro ABS/MBS unchanged

    Trading patterns in the European ABS/MBS secondary market remain unchanged.

    The lack of primary supply across all sectors continues to stifle flows and discourage BWIC activity. Nevertheless, tone remains positive and demand strong, consequently secondary spreads are flat to slightly tighter on the week.

    There is currently one BWIC on the European ABS/MBS schedule for today. It is a five line .......

    SCIWire 15 June 2017

  • Prosecutors probe valuations process

    US prosecutors, after years spent studying the sell-side, appear to be turning their attentions to the buy-side, as investigations have begun into whether structured credit hedge funds inflated the value of debt securities for their portfolios. The probe is particularly concerned with whether brokers were encouraged to give dishonest valuations for month-end marks.

    The reasons for a fund to seek .......

    News Analysis 14 June 2017

  • ABS first for marketplace lender

    Lending Club in in the market with a US$279.38m ABS backed by near-prime unsecured consumer loans originated via its online lending platform (see SCI's deal pipeline). Dubbed Consumer Loan Underlying Bond Credit Trust 2017-NP1 (CLUB 2017-NP1), it is the first transaction the platform itself has sponsored.

    Kroll Bond Rating Agency has assigned provisional ratings of single-A minus to the .......

    News 13 June 2017

  • Euro secondary flickers

    The European securitisation secondary market is slowly flickering back to life.

    Overall, all ABS/MBS and CLO sectors remain insulated from broader market moves with tone and secondary spreads still solid. Nevertheless, flows have been thin over the past two sessions as the market slowly finds its feet post the Barcelona conference and UK election.

    There has, however, been a flurry .......

    SCIWire 13 June 2017

  • Spanish EFSI deal debuts

    The EIF has closed its second European Fund for Strategic Investments (EFSI) deal, providing BBVA with a €143bn mezzanine guarantee facility. The transaction references a €3bn portfolio of Spanish SME loans and is the first Spanish synthetic securitisation under the Investment Plan for Europe.

    The Investment Plan allows the EIB Group to fund investment projects that - due to their .......

    News 12 June 2017

  • Job swaps round-up - 9 June

    North America

    Brian Ford has been appointed head of structured finance research at Kroll Bond Rating Agency, starting the role in New York next week. He previously spent five years at the rating agency, but was most recently at Barclays, where he was credit strategy vp. He has also worked at Citi and began his career at Eaton Vance.

    Hudson .......

    Job Swaps 9 June 2017

  • Bankruptcy reform opens floodgates

    India's bankruptcy law has attracted increased investment in its non-performing loan market, following reforms to the enforceability of contracts. However, concerns remain over whether associated time-bound decisions can be achieved, due to the complexity of the legal system.

    "The main issue with the Indian NPL market was the enforceability of contracts," observes Sakate Khaitan, partner at Khaitan Legal Associates.

    The .......

    News Analysis 9 June 2017

  • CHOICE Act passes in House

    The US House of Representatives has passed the Financial CHOICE Act. The legislation aims to replace much of the Dodd-Frank Act, specifically criticising Dodd-Frank's "one size fits all" approach to securitisation and doing away with risk retention requirements for all asset classes except RMBS.

    The Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs (CHOICE) Act (SCI passim) intends to provide .......

    News 9 June 2017

  • MPS solvency plan outlined

    Monte dei Paschi di Siena (MPS) has set out a plan to demonstrate its solvency to regulators, paving the way for a precautionary recapitalisation by year-end. The plan hinges on the lender's ability to dispose of its €30bn non-performing loan portfolio - including via a securitisation - which it was unable to achieve in December, when it was forced to .......

    News Analysis 8 June 2017

  • European market growth predicted

    European securitisation market participants expect the number of investors to grow and participation by investors to increase. Increased investor support is identified in a recent DBRS survey as one of the most important changes required in order to grow the securitisation market, while regulatory concerns once again dominate.

    The DBRS survey was conducted before the European regulatory changes were announced last week .......

    News 6 June 2017

  • Marketplace ABS evolving

    At the upcoming SCI Marketplace Lending Securitisation Seminar in New York on 22 June, panellists will discuss the structuring and evolution of marketplace loan ABS. The fact that deals are increasingly incorporating features to reduce risk is one area that is expected to be covered.

    Ram Ahluwalia, ceo of PeerIQ, notes that more standardisation is still needed for .......

    Talking Point 5 June 2017

  • STS strikes investor and issuer balance

    Further details have emerged over the STS securitisation agreement that was finalised this week (SCI 31 May). Most notably, the authorisation process for third parties that support verification and compliance with STS requirements strikes a balance between issuer and investor considerations.

    According to a European Parliament press release, there will be a "light" authorisation process for third parties that support .......

    News Analysis 2 June 2017

  • Risk transfer round-up - 2 June

    Dynamic Credit is prepping another Dutch RMBS originated under the ELAN Woninghypotheken brand. Dubbed DCDML 2007-1, it is being arranged by Goldman Sachs and is expected to launch by end-Q3. The full capital stack DCDML 2016-1 was completed last October (see SCI's primary issuance database), achieving balance sheet relief for the lender.

    .......

    News 2 June 2017

  • MARF listing breaks new ground

    The Mercado Alternativo de Renta Fija (MARF) has admitted a new synthetic securitisation dubbed FT PYMES Magdalena, set up by Banco Santander's securitisation management company, Sociedad Gestora Santander de Titulización SGFT. The move sets a precedent in terms of synthetics being publicly listed and is seen as a test case for the 2015 amendments to Spain's securitisation law.

    Following the .......

    News 1 June 2017

  • Euro secondary sporadic

    The European securitisation secondary market continues to exhibit the pattern of recent weeks with sporadic bursts of activity in specific areas.

    The stop-start nature of all asset classes has been further exacerbated by recent public holidays, month-end and the run-up to Global ABS. With wholesale absences at the conference next week little is likely to change in the near future.

    SCIWire 1 June 2017

  • STS framework finalised

    A deal has been reached on the long-awaited new EU securitisation regulations, including a framework for STS securitisation. In what is being seen as a major step forward for the European ABS market, the European Commission, Council and Parliament reached a compromise yesterday evening, with risk retention requirements to remain unchanged at the current minimum of 5% and several punitive .......

    News 31 May 2017

  • Credit-scoring models contrasted

    The importance to ABS of the VantageScore credit-scoring model continues to grow, with structured finance transactions increasingly using the credit metric. As such, rating agency DBRS believes investors would benefit from a greater understanding of the FICO alternative.

    "Evidence points at VantageScore gaining traction in consumer lending and, by extension, in structured finance. The inclusion of VantageScore as a credit .......

    News 31 May 2017

  • Irish central bank steps up NPL pressure

    The governor of the Central Bank of Ireland stated this week that the pace of NPL reduction in Ireland is too slow and new strategies are needed to combat the still elevated volume of bad loans. The move signifies increased political pressure on Irish banks to reduce NPL ratios.

    This is somewhat complicated by the fact that Ireland is considered .......

    News Analysis 26 May 2017

  • Risk transfer round-up - 26 May

    According to sources Barclays is prepping a deal, although the underlying asset is unknown. Given the lender's active corporate loan issuance however the underlying asset may likely be corporate loans.

    At the same time we have heard of another GARC deal by Intesa San Paolo. This deal could "possibly" come by the end of the year, sources say. The issuer's .......

    News 26 May 2017

  • First Aussie master trust ABS well received

    The first Australian ABS to use a master trust structure has proved ground-breaking in several ways. While it took a lot of work, the market reaction suggests the effort was well worth it.

    The A$1bn Latitude Australia Credit Card Loan Note Trust Series 2017-1 transaction (see SCI's deal database) was the first deal to come from Latitude Financial .......

    News Analysis 26 May 2017
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