ABS

  • Wireless spectrum auction 'ABS positive'

    T-Mobile won the most number of licences in the US Federal Communication Commission's 600-megahertz spectrum auction earlier this month, spending US$8bn in the US$19.8bn auction. This win is credit positive for wireless tower ABS sponsored by American Tower Corporation, Crown Castle International and SBA Communications, says Moody's.

    The rating agency believes T-Mobile will be prompted to spend more to upgrade .......

    News 25 April 2017

  • Basel 4 raises Dutch SRT prospects

    Higher capital requirements mooted under Basel 4 are likely to disproportionately affect Dutch banks, given their large mortgage exposures. This is expected to result in a flurry of Dutch capital relief trades.

    One industry source notes that a 90%-100% LTV currently results in a 43% risk weight for standardised banks, but the Basel 4 proposal contemplates increasing it to 55%. .......

    News Analysis 25 April 2017

  • Euro secondary boosted

    The European securitisation secondary market has been boosted by the first round result in the French presidential election.

    Trading activity picked up yesterday and the BWIC calendar is slowly growing albeit from very low recent levels. The elements of softness seen last week have reversed and secondary spreads across ABS/MBS and CLOs are flat to slightly tighter.

    There are currently two .......

    SCIWire 25 April 2017

  • European hot spots highlighted

    CLOs and RMBS are seen as the main growth areas in the European securitisation market at present. Drivers include a broadening of the investor base for the former and continued bank deleveraging for the latter.

    AFME data for 1Q17 shows that pan-European CLOs led placed European securitisation issuance, followed by UK RMBS and Dutch RMBS. Volumes across these sectors totalled .......

    Talking Point 24 April 2017

  • Record cat bond issuance assessed

    The average size of catastrophe bonds climbed significantly - by 31% - to US$292m in 1Q17, according to PCS figures. The firm notes that the issuance of the Galilei Re, Aozora Re and Sanders Re transactions had "disproportionate effects" on volumes (see SCI's primary issuance database).

    "Half the transactions [issued in Q1] were small (under US$200m) and it .......

    News 21 April 2017

  • Risk transfer round-up - 21 April

    The EIF returned to the risk transfer market this week, with a €90m mezzanine guarantee for a €1.5bn portfolio of corporate loans originated by Commerzbank. The guarantee aims to spur lending to mainly German SMEs and midcaps by reducing bank capital requirements.

    Elsewhere, sources in the Dutch market suggest that Dynamic Credit is readying another balance sheet relief RMBS, following .......

    News 21 April 2017

  • Job swaps round-up - 21 April

    North America

    Morningstar has hired Charles Citro as md for CMBS ratings and analytics, based in New York, reporting to Vickie Tillman, president of Morningstar Credit Ratings. Most recently, Citro was senior md at Cushman and Wakefield within the asset surveillance group.

    Nations Equipment Finance has hired Susan O'Donovan as cfo. She was previously at Castleton Commodities International as executive .......

    Job Swaps 21 April 2017

  • Coinstar ABS debuts

    Coinstar is marketing its inaugural US$900m whole business securitisation. Coinstar Funding Series 2017-1 is backed by revenue generated from a multi-national network of fully automated self-service coin counting machines.

    KBRA has assigned provisional ratings of triple-B to the deal's US$60m class A1
    and US$840m class A2 notes. The anticipated repayment date is April 2022, while the legal final maturity date is .......

    News 20 April 2017

  • Euro ABS/MBS picks up

    Activity in the European ABS/MBS secondary market is picking up after the Easter break.

    Yesterday saw a flurry of both bilateral trading and BWICs primarily driven by rotation activity. Secondary spreads remain firm for now given the recent paucity of supply, but the possibility of some weakening in higher beta paper is emerging.

    There are currently four BWICs on the .......

    SCIWire 20 April 2017

  • Tranched cover trades gaining traction

    Tranched cover synthetic securitisation issuance is picking up in Europe, as regulatory capital requirements bite. The advantages of such non-standard structures include their limited ongoing costs, as well as their flexibility and bilateral nature.

    Unlike standard synthetic securitisations where all elements of the transaction are contractually defined (including the size and conditions of all tranches), the structure of a tranched .......

    News Analysis 18 April 2017

  • Chinese NPL ABS growing in size and diversity

    The Chinese non-performing loan securitisation sector is set to grow, adding to the existing RMB16.33bn worth of transactions since the market opened in May 2016, according to Moody's. The agency notes that transactions with a mixture of unsecured and secured NPLs are emerging, with deals backed by unsecured loans having weaker credit quality and pricing at a bigger discount than .......

    News 13 April 2017

  • Floating-rate ABS lacks support for growth

    Lack of demand will likely limit the growth of floating-rate ABS and CMBS in the US, despite rising interest rates. Investors may instead hedge against interest rate exposure or invest in floating-rate products with a long performance history, such as corporate CLOs.

    Fitch recently suggested that floating-rate CMBS conduits may re-emerge in the US due to rising interest rates and .......

    News Analysis 13 April 2017

  • New ABCP conduit launches

    A new European ABCP conduit has launched, securitising insured trade receivables that are fully guaranteed by Altradius Credito y Caucion (ACyC). Moody's has provisionally rated IM SUMMA 1's Euro-commercial paper (ECP) class at P2 and its European medium-term note (EMTN) class at A3.

    IM SUMMA 1 is a fund with the ability to purchase further assets and issue further liabilities. .......

    News 12 April 2017

  • Debut consumer ABS prepped

    Tidewater is marketing its first term consumer finance ABS. Dubbed Tidewater Sales Finance Master Trust Series 2017-A, the US$68.92m securitisation is backed by retail installment contracts.

    While Tidewater has an established auto loan business, this transaction marks the first term ABS from Tidewater Credit Services, an originator of retail installment and revolving contracts to non-prime consumers for the purchase of .......

    News 11 April 2017

  • Euro secondary ebbs and flows

    Activity in the European securitisation secondary market continues to ebb and flow.

    Trading patterns continue unchanged across ABS/MBS and CLO sectors - from time to time volumes begin to build before dissipating once again amid positive market sentiment. Last week reflected that as activity fizzled out towards the end of the week, while yesterday saw a flurry of auctions and .......

    SCIWire 11 April 2017

  • Job swaps round-up - 7 April

    North America

    KeyBanc Capital Markets has hired Chris O'Neill and Jeffrey Tucker to its securitised products team. O'Neill will act as md and Tucker as director and both will report to Keith Newman and Michael Corsi, co-heads of securitised products. O'Neill was previously md at RBC, focusing on non-agency and agency MBS and ABS. Tucker was previously director in the .......

    Job Swaps 7 April 2017

  • Risk transfer round-up - 7 April

    Activity in the capital relief trade space appears to be increasing in line with expectations of more issuance, as the revisions to the CRR kick in next year (SCI 5 April). Indeed, volumes are anticipated to pick up this quarter.

    Most recently, Lloyds closed Salisbury II-A Securities 2017, a tap of the Salisbury deal it issued in December (SCI 14 .......

    News 7 April 2017

  • Chinese auto ABS hits top rating

    The first Chinese auto loan ABS to receive a triple-A rating from S&P is currently marketing (see SCI's deal pipeline), although Fitch has not rated it so highly. Fuyuan 2017-1 Retail Auto Mortgage Loan Securitization Trust is a CNY2.884bn secured by loans to prime quality borrowers.

    The CNY2.505bn class A notes have been rated triple-A by S&P and .......

    News 7 April 2017

  • China tipped as next NPL frontier

    Distressed debt investors are becoming more active in the Chinese non-performing loan market. Recent government action - including the creation of a more transparent and effective legal system - is widening the scope of opportunities in the sector.

    Andrew Brown, partner at Shorevest, notes that the key difference between China and other jurisdictions is the government's control over the economy, .......

    News Analysis 6 April 2017

  • Euro ABS/MBS active

    The European ABS/MBS secondary market is once again active without yet fully taking off.

    "Secondary is now chugging along," says one trader. "There's enough going on to keep us occupied, but nothing major."

    The trader continues: "There are selective opportunities, but there's no real stand-out activity. One possible exception to that is some of the racier positions from the big .......

    SCIWire 6 April 2017

  • Synthetics to receive an STS designation?

    Momentum is growing for a simple, standardised and transparent (STS) designation for synthetic securitisations at the EU level, driven by the support of the European Commission and the EBA. Such a designation is expected to increase supply and enhance standardisation in the risk transfer market.

    Synthetic securitisations were not initially included in the scope of either the Basel Committee's simple, .......

    News Analysis 5 April 2017
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