ABS

  • UK government to securitise student loan book

    The UK government is looking to raise £12bn through the structuring and sale of a series of ABS backed by student loans. Its first offering - Income Contingent Student Loans 1 (2002-2006) - securitises a £4.1bn portfolio, but it is not clear whether the paper will appeal to the traditional ABS investor base.

    Student loan ABS is a well established .......

    News Analysis 21 February 2017

  • Marketplace deals readied, with innovations

    Kabbage is marketing its first marketplace loan ABS of the year and its second since inception. Meanwhile, SoFi is in the market with its second consumer loan ABS - SoFi Consumer Loan Program 2017-2 - backed by US$343m of consumer loans and comprising several elements that differ from its previous securitisation.

    Dubbed Kabbage Asset Securitization Series 2017-1, Kabbage's transaction is .......

    News 21 February 2017

  • Euro secondary quiet

    It was a quiet start to the week across the European securitisation secondary market thanks primarily to the US public holiday.

    As a result, little has changed - sentiment remains positive, the demand for paper is still strong and sellers are few and far between as the belief continues that it is not yet the time for extensive profit-taking. Overall, .......

    SCIWire 21 February 2017

  • Deploying capital

    Chris Redmond, global head of credit at Willis Towers Watson, answers SCI's questions

    Q: How and when did Willis Towers Watson become involved in the securitisation market?
    A:     Willis Towers Watson has an international team conducting research of all credit managers and products, including securitised credit. While we had exposure to securitised credit via broad, generalist mandates beforehand, it was in the aftermath of the financial crisis when we started making dedicated, specialist allocations .......

    The Structured Credit Interview 20 February 2017

  • Italian mixed NPL portfolio added

    AnaCap Financial Partners is set to acquire a €177m portfolio of Italian performing and non-performing corporate secured loans from Barclays. The transaction is the latest in a flurry of Italian mixed portfolio acquisitions through which the private equity firm has developed valuation expertise.

    AnaCap targets mixed portfolios of primarily consumer and SME debt across Europe, including performing, semi-performing and non-performing .......

    News Analysis 17 February 2017

  • CPACE partnership to leverage ABS

    Renovate America and Greenworks Lending have formed a national partnership to offer commercial PACE financing through the HERO securitisation programme in Missouri, allowing both firms to leverage considerable synergies. The two firms plan to expand their CPACE partnership to all states where the HERO programme operates, including California and Florida, later this year.

    "This partnership enables us to better serve .......

    News 17 February 2017

  • Job swaps round-up - 17 February

    Europe
    Wells Fargo     has hired Steve Hulett as head of credit and ABS sales EMEA. He was previously co-head of mortgages and ABS for Jefferies, Europe.

    North America
    Gramercy Funds Management has appointed Bradshaw McKee to the role of md, capital solutions and distressed portfolio manager. He was previously co-head of emerging markets, structured credit trading at Deutsche Bank.

    Houlihan Capital has .......

    Job Swaps 17 February 2017

  • Euro ABS/MBS drifts

    The European ABS/MBS secondary market appears to be drifting along this week.

    Trading activity continues to be patchy with overall volumes very light and supply remains limited across all ABS/MBS sectors. Market tone is still strong and as a result secondary spreads are broadly unmoved over the past three sessions. Any major change is unlikely over the next few trading .......

    SCIWire 16 February 2017

  • Optimistic outlook for Brazilian ILS

    AlphaCat Managers and Terra Brasis Resseguros have completed a US$5m private catastrophe bond-lite. Dubbed Alpha Terra Validus I, the transaction is believed to be the first offering of Latin American reinsurance risk on an indemnity basis and is the first cat bond sponsored by a Brazilian company.

    Listed on the Bermuda Stock Exchange, Alpha Terra Validus I was issued through .......

    News 15 February 2017

  • US ABS tightens

    US ABS secondary market spreads keep tightening despite continued supply.

    Appetite for paper in secondary remains strong across the majority of ABS sectors and even any uptick in primary issuance is having little impact. For example, the announcement of two new sizeable American Express deals saw credit card spreads continue to tighten in both fixed and floating.

    Further, the growing .......

    SCIWire 14 February 2017

  • Credit card issuance on a roll

    American Express has returned to the ABS market after an 18-month absence with a pair of credit card securitisations accounting for US$1.15bn of paper. The move comes after approximately US$5.5bn was placed by four other credit card issuers in January (see SCI's primary issuance database).

    Both the US$571.4m American Express Credit Account Master Trust Series 2017-1 and US$574.8m .......

    News 14 February 2017

  • Farm forecast is ABS 'credit positive'

    US farm net cash income is predicted to rise 1.8% to US$93.5bn this year, ending three consecutive years of annual declines. This forecast by the US Department of Agriculture (USDA) is credit positive for US ABS tied to agricultural equipment loans, particularly transactions issued by John Deere Capital Corporation and CNH Industrial Capital, reckons Moody's.

    Delinquencies among underlying loans have .......

    News 14 February 2017

  • Euro secondary unchanged

    Activity in the European securitisation secondary market is little changed from that seen in recent weeks.

    Flows remain light across all sectors as sellers remain largely absent amid continuing positive market sentiment. The few BWICs that do crop up are still met with very strong demand and secondary spreads are consequently holding tight.

    There is currently one BWIC on the .......

    SCIWire 14 February 2017

  • Positive start for Aussie issuance

    Bank of Queensland last week priced its upsized A$1bn Series 2017-1 REDS Trust prime RMBS, the first Australian securitisation to hit the market in 2017, with the senior tranche seeing significant demand. Four transactions from the jurisdiction remain in the pipeline, including a non-conforming RMBS and a consumer ABS (see SCI's pipeline).

    Rated by Fitch and S&P, the .......

    News 13 February 2017

  • Regulatory divergence on the cards?

    President Trump continues to assert his desire to roll back regulation imposed after the financial crisis and dismantling the Dodd-Frank Act is high on his agenda. There are concerns that should it be repealed - either as a whole or in part - greater divergence could occur between the US and European securitisation markets, giving the US a competitive advantage.

    News 10 February 2017

  • Liquid alternatives firm formed

    Pacific Alternative Asset Management Company (PAAMCO) has entered into a strategic transaction to create a new liquid alternatives investment firm by combining with KKR Prisma. The new entity, which will operate under the brand PAAMCO Prisma Holdings, could be expected to invest in structured credit products.

    Under the terms of the agreement, the entire businesses of both PAAMCO and KKR .......

    News 10 February 2017

  • Distressed vet heads new credit platform

    BC Partners has recruited Ted Goldthorpe to lead its new credit platform, BC Partners Credit. The firm will pursue a strategy that identifies attractive opportunities in any market environment and across sectors, including stressed/distressed debt, asset-based lending and structured finance.

    Previously president of Apollo Investment Corporation, Goldthorpe has been hired as a managing partner to launch and oversee BC Partners .......

    News 10 February 2017

  • Mariner makes market debut

    Mariner Finance has hit the market with an inaugural US$225m consumer finance securitisation. Dubbed Mariner Finance Issuance Trust 2017-A, the transaction comprises 89,914 non-prime/subprime secured and unsecured consumer loans.

    Provisionally rated by KBRA and S&P, the ABS comprises US$189m AA-/BBB+ class A notes,  US$19.8m A/NR class Bs and US$16.2m BBB/NR class Cs. Mariner is both servicer and sponsor of the .......

    News 10 February 2017

  • Risk retention trends emerging

    Different retention strategies have emerged for US CLOs and CMBS leading up to and since the implementation of risk retention rules on 24 December 2016, with varying benefits also arising, such as a perception of increased quality in such deals. For the broader ABS market, however, approaches are still taking shape.

    There are five main strategies for risk retention: a .......

    News Analysis 9 February 2017

  • Leveraging NPL disposals

    UniCredit is expected to use leverage in its planned €17.7bn NPL securitisation, dubbed Project Fino, in an attempt to bridge the bid/ask gap on the asset valuations with investors PIMCO and Fortress (SCI 14 December 2016). The first phase of the transaction - in which it will sell at least a 20% vertical tranche of the portfolio - will be .......

    News Analysis 9 February 2017

  • TGI Friday's taps market

    TGI Friday's is in the market with a US$450m whole business securitisation. Dubbed TGIF Funding, the transaction is backed by royalties from 849 franchise locations and 54 company-operated restaurants.

    The deal comprises US$50m class A1 notes and US$400m class A2 notes, both provisionally rated BBB/BBB- by KBRA and S&P. Barclays is sole structuring advisor and book-runner, while FTI Consulting is .......

    News 9 February 2017
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