ABS

  • 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

  • Diverse solar ABS announced

    Sunnova Energy is marketing its inaugural US$254.75m securitisation. Dubbed Helios Issuer Series 2017-1, it is backed by a pool of 13,838 leases linked to residential solar photovoltaic (PV) installations.

    The collateral comprises power purchase agreements (PPA), EZ Pay PPAs and 20 hedged solar renewable energy certificate (SREC) contracts. The solar service agreements (SSAs) securing the transaction have an aggregate discounted .......

    News 4 April 2017

  • US ABS keeps tight

    US ABS secondary spreads are keeping tight as the new quarter begins.

    The run-in for the last quarter and start to the next were relatively quiet across most US ABS sectors. However, the market continued to hold on to its gains from a very strong Q1.

    Multiple sectors and parts of the stack are at or very close to post-crisis .......

    SCIWire 4 April 2017

  • Leverage ratio driving off-balance sheet trend

    A number of European banks - including Rabobank and Credit Foncier - are becoming more active in the true sale securitisation format for risk transfer transactions. The move is being driven by the focus on balance sheet reduction, following the introduction of leverage ratio requirements under Basel 3.

    Rabobank's foray into the true sale format follows its debut off-balance sheet .......

    News Analysis 4 April 2017

  • Euro secondary restarts

    The turn of the quarter has restarted activity in the European securitisation secondary market.

    Flows and BWIC supply are picking up across the board this week. So far execution levels remain strong as long-standing pent up demand gets some release.

    As a result, secondary spreads remain firm amid positive market sentiment. However, the growing secondary and primary calendars are yet .......

    SCIWire 4 April 2017

  • Portuguese NPL prospects boosted

    Lone Star is set to acquire 75% of Novo Banco, Portugal's third largest lender, in return for a €1bn capital injection. The acquisition, along with the mooted creation of a bad bank, signals growing investor activity in the Portuguese non-performing loan market.

    Under the agreement, the resolution fund (a public body financed by all Portuguese banks) will inject capital into .......

    News Analysis 3 April 2017

  • Job swaps round-up - 31 March

    EMEA

    EJF Capital is to float its closed-ended investment fund on the London Stock Exchange. Dubbed EJF Investments, it will aim to invest in long-term, cashflow generating assets in three identified target investment areas - risk retention, capital solutions, ABS and specialty finance. Liberum Capital is acting as financial advisor on the admission and it's expected that dealings in the .......

    Job Swaps 31 March 2017

  • Legislation, growth drive Cyprus turnaround

    Cyprus's non-performing exposures (NPE) ratio has experienced significant improvements, given stronger GDP growth and the adoption of an insolvency framework. At the same time, servicing is becoming an increasingly viable option for the restructuring of delinquent loans.

    According to Adriana Alvarado, vp at DBRS: "The steady recovery of the economy, which posted growth for a second consecutive year in 2016, .......

    News Analysis 31 March 2017

  • Debut prime auto ABS prepped

    GM Financial is in the market with its inaugural prime auto loan ABS. The US$1bn GM Financial Consumer Automobile Receivables Trust 2017-1 transaction is backed by 39,380 retail installment contracts originated or acquired by GM Financial.

    The portfolio comprises 22% cars, 21% CUVs, 21% SUVs and 36% light-duty trucks, split 84%/16% between new and used vehicles. The pool has a .......

    News 31 March 2017

  • Euro ABS/MBS unchanged

    Spreads and activity levels remain unchanged across the European ABS/MBS secondary market.

    A combination of month-end and benign wider markets has made for another couple of quiet sessions. Consequently, strong market tone and limited supply continue to hold secondary spreads in.

    The pricing of a number of new issues this week could yet shake out some sellers before month-end. However, .......

    SCIWire 30 March 2017

  • 'Less conventional' auto ABS to emerge?

    Moody's expects German carmakers to offer attractive financing terms and retain residual value risks to boost demand for their alternative fuel vehicles (AFVs) and encourage AFV adoption. However, as the technology matures and AFV penetration increases, residual value risk is likely to shift to new industry participants.

    "BMW, Daimler and Volkswagen will make full use of their captive finance operations .......

    News 29 March 2017

  • Income-contingent SLABS approach revealed

    Further details have emerged of the UK government's £3.94bn Income Contingent Student Loans 1 (2002-2006) transaction, the first UK student loan ABS to be backed by income-contingent repayment (ICR) loans (SCI 21 February). Together with assigning expected ratings to the deal, Fitch has published a criteria report detailing its approach to rating UK income-contingent student loan securitisations.

    Income-contingent student loans .......

    News 29 March 2017

  • Euro secondary unmoved

    The European securitisation secondary market remains unmoved by wider market volatility.

    The see-saw in equities and broader credit over the past two sessions has not been reflected in secondary spreads, which continue to hold firm. Indeed, sentiment remains positive and demand continues to outstrip supply.

    Nevertheless, activity overall remains light with only some rotation activity and patchy flows in key .......

    SCIWire 28 March 2017

  • Job swaps round-up - 24 March

    North America

    Alcentra has hired Brandon Chao as svp in New York, joining from Omega Advisors, where he was a senior analyst for structured products and corporate credit. He will report to the firm's global head of structured credit, Hiram Hamilton, who is relocating to the New York office in April. Hamilton was previously executive director and head of the .......

    Job Swaps 24 March 2017

  • Risk transfer round-up - 24 March

    Deutsche Bank is believed to have priced its CRAFT CLO 2017-1 capital relief trade this week (SCI 17 March), with market sources suggesting that the deal met with "good appetite from investors". The US$357m transaction printed at Libor plus 10.75%, having been upsized from US$200m on strong demand.

    .......

    News 24 March 2017

  • Canadian banks eye credit card appetite

    Canadian banks are capitalising on strong demand for US dollar-denominated credit card ABS. The sector has seen a resurgence in recent months, with deals being upsized and performance remaining sound.

    Last year was a record year for Canadian credit card ABS volumes and the pace seems set to continue in 2017, with two cross-border issuances so far this year, including .......

    News Analysis 24 March 2017

  • US ABS holds on

    Despite a boom in supply US ABS secondary spreads are holding on.

    After a quiet week last week, the pricing of the sizeable latest COMET deal and the ever-growing US ABS pipeline combined to give the secondary market a rocky start to the week. Hefty BWIC supply driven primarily by rotation activity added to the new issuance and pushed secondary .......

    SCIWire 23 March 2017

  • Russian SME ABS sets the standard

    The Russian SME loan market is anticipated to grow, with further SME ABS issuance following suit. As the Russian SME ABS sector develops, several innovations seen in last year's offering from Promsvyazbank are expected to be replicated.

    Promsvyazbank's RUB10bn SPE PSB SME 2015, issued in September last year (see SCI's primary issuance database), was the first domestic issuance .......

    News 22 March 2017

  • Counterparty revisions to hit EMEA ABS

    Moody's is requesting comments on proposals to consolidate and revise its approaches to assessing a number of structured finance-related counterparty risks. If adopted, the changes are expected to have a ratings impact of one to two notches on approximately 210-220 structured finance transactions.

    "The proposed changes are being driven by a variety of factors," says Moody's svp Michelangelo Margaria. "Among .......

    News 22 March 2017

  • Lender actions key to managing auto losses

    Rising losses across the US auto ABS sector are at odds with strong economic conditions and low unemployment levels, albeit greater losses in the subprime space are being mitigated by lender actions, such as loan extensions. Whether losses increase further may depend on lenders' ability to maintain or further strengthen credit standards that have been weakening until recently.

    S&P notes .......

    News Analysis 21 March 2017

  • Euro secondary ticks over

    The European securitisation secondary market continues to tick over.

    Activity remains patchy across the board with sporadic BWICs and light bilateral volumes. Further distraction has emerged with a handful of new ABS, CLO and RMBS deals now actively marketing, but overall tone is still positive and secondary spreads continue to hold in or tighten.

    The past couple of sessions remained centred .......

    SCIWire 21 March 2017
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