ABS

  • Card ABS volume to grow

    Credit card debt in the US is growing while credit card utilisation rates are trending lower, suggesting that consumers are using credit cards as a "convenient payment option and less as a line of credit", according to Wells Fargo structured products analysts. They add that credit card debt levels are at a much lower percentage of nominal GDP than in the past.

    News Round-up 19 January 2017

  • Unconstrained fund launched

    Dolfin has launched the Dolfin Unconstrained Credit Strategy, which targets consistently positive returns in all market contexts by capturing top-down market shifts and investing in attractive bottom-up opportunities across the global fixed income spectrum. Devised and managed by senior portfolio manager Alex Eventon, the strategy applies rare investment flexibility, institutional investment tools and dynamic risk management, with a performance target .......

    News Round-up 19 January 2017

  • Euro ABS/MBS accelerates

    Activity has accelerated in the European ABS/MBS secondary market after a slow start to the week.

    The continuing strong tone and investor cash reserves continue to fuel demand for paper, which has generated increased bilateral trading in most sectors over the past two sessions. At the same time, BWIC volumes remain low as sellers keep their powder dry, while the .......

    SCIWire 19 January 2017

  • Varied approaches

    Retained risk valuation practices gauged

    The horizontal retention piece of a securitisation could be considered the very definition of a Level 3 asset: rarely traded - if ever - with very limited market information. Subject to fair value assessment before and after a deal closes, market participants are taking a number of different valuation approaches to such assets, with no single method yet considered to .......

    News Analysis 19 January 2017

  • Bar loan ruling 'ABS negative'

    A 2016 ruling by the US Bankruptcy Court for the Eastern District of New York on the dischargeability of bar loans is credit negative for securitisations, says Moody's. The ruling found that a bar loan was not exempt from being discharged, which is credit negative because it could lead to future higher defaults and lower recoveries on similar loans.

    The .......

    News Round-up 18 January 2017

  • ILS firm launched

    A new alternative asset management firm focused on ILS investments has been founded in Tel Aviv. Dubbed IBI ILS Partners, it has been co-founded by Israel's IBI Investment House and Roman Muraviev.

    Muraviev will act as managing partner of IBI ILS Partners. He was previously at Twelve Capital, where he managed the firm's cat bond strategy.

    IBI Investment House is one .......

    Job Swaps 18 January 2017

  • Modelling head named

    MSCI has recruited David Zhang as head of securitised products research. In this newly created role, he will oversee the firm's development of models that help traders, portfolio managers and other institutional investors analyse risk and return for securitised products.

    Zhang previously headed modelling of securitised products at Credit Suisse. In 11 years at the firm, he designed models for .......

    Job Swaps 18 January 2017

  • Chrysler scandal 'ABS negative'

    The US Environmental Protection Agency (EPA) has issued a notice of violation of the Clean Air Act to Fiat Chrysler because of the installation and use of engine management software to manipulate diesel emissions. Moody's notes that this is credit negative for some US auto ABS.

    The EPA violation notice cites more than 100,000 model year 2014-2016 Jeep Grand Cherokees .......

    News Round-up 17 January 2017

  • ILS firm placements head appointed

    XL Catlin has appointed Anne Middleton as global head of placements, ceded reinsurance. Middleton will be based in London and be responsible for overseeing and negotiating the terms, structure and pricing of XL Catlin's reinsurance programmes.

    Middleton will report to Mark van Zanden, chief executive of XL Catlin's P&C underwriting capital management team. She was previously head of finance for .......

    Job Swaps 17 January 2017

  • Euro secondary slow

    It's been slow start to the week so far for the European securitisation secondary markets.

    Participants look to have taken the opportunity of the US public holiday yesterday to catch their breath and there was little movement in terms of trading or levels. However, tone remains very strong across the board and volumes are likely to pick up as the .......

    SCIWire 17 January 2017

  • Weather risk platform introduced

    Speedwell Weather has launched its weatherXchange platform, which aims to help companies access index-based weather risk protection and which provides valuation and settlement services. As well as access to weather data, it also provides structuring tools to help new hedgers through the process of designing a hedge.

    weatherXchange is designed to bring index-based weather hedging to new users in energy, .......

    News Round-up 16 January 2017

  • Ratings suits settled

    The US Department of Justice, 21 states and the District of Columbia have reached a nearly US$864m settlement agreement with Moody's, Moody's Analytics and their parent Moody's Corporation. The settlement resolves allegations arising from Moody's role in providing credit ratings for legacy RMBS and CDOs, including pending state court lawsuits in Connecticut, Mississippi and South Carolina, as well as potential .......

    Job Swaps 16 January 2017

  • Flawed logic

    Regulators' confidence in extra ratings 'misplaced'

    The regulatory drive to require multiple ratings for European structured finance products may not achieve its intended aims, despite necessarily adding costs. The findings of a recent Finance Research Letters study suggest that the regulatory initiative is based on an understanding of market practices that is not borne out by facts.

    Conventional wisdom states that investors gain comfort from additional .......

    News Analysis 13 January 2017

  • Holding steady

    Partnerships, ABS to help marketplace lending stabilise

    The marketplace lending sector endured several tests to its model at the start of 2016, but managed to regain investor confidence by year-end, reflected in a resurgence of MPL ABS issuance. While 2017 could be defined by consolidation, partnerships and greater securitisation activity, questions remain over true lender status, regulatory oversight and how firms will adapt in a rising interest .......

    News Analysis 12 January 2017

  • Tradewynd bonds affirmed

    Fitch has affirmed the Tradewynd Re Series 2014-1 class 3A and 3B notes, which are expected to mature on 8 January 2018, at double-B minus and single-B respectively. The agency confirms that no reported covered events exceeded the initial attachment levels of the notes within the annual risk period from 1 January 2016 through 31 December. All interest was paid .......

    News Round-up 11 January 2017

  • Aussie auto outlook negative

    The performance of assets backing Australian auto ABS is negative, while the performance of mortgage assets backing Australian RMBS is stable, according to Moody's in a 2017 outlook. The rating agency adds that mortgage delinquencies may increase, but only moderately and from low levels, while auto ABS will generally see higher losses and delinquencies through 2017.

    Moody's says that several .......

    News Round-up 11 January 2017

  • Investment chief named

    Semper Capital Management has promoted Zach Cooper from deputy cio to cio, replacing Jay Menozzi, who has retired from the industry. Cooper will continue as one of the firm's senior portfolio managers. He has over 20 years of structured credit investment experience, having previously worked at Treesdale Partners, PrinceRidge, Highland Financial and Deutsche Bank.

    .......

    Job Swaps 11 January 2017

  • Green SRT emerging

    The final panel at SCI's recent Capital Relief Trades Seminar struck an optimistic note regarding developments in new jurisdictions and asset classes. Indeed, 'green' lending is emerging as a consideration for some investors in the sector.

    The European landscape as a whole has witnessed a boost in capital relief trade activity. According to Molly Whitehouse, vp at Mariner Investment Group, .......

    News 11 January 2017

  • A nebulous concept

    Challenges in defining the cost of capital highlighted

    The challenges in defining the cost of capital were discussed extensively at SCI's recent Capital Relief Trades Seminar. Panellists agreed that it is a nebulous concept.

    "The most naïve view one usually starts with is that the cost of capital is effectively the coupon of the first year divided by the capital relief," said Jeremy Bradley, director at Lloyds. "Yet .......

    Talking Point 11 January 2017

  • Italian comeback?

    Scope Ratings expects a "slow, unsteady comeback" for public securitisations of Italian non-performing loan ABS in 2017. The agency says that their return "can help improve Italian banks' balance sheets, which will allow them to refocus on retail and corporate lending."

    Bank of Italy figures show that the stock of Italian gross NPLs fell by €4bn to €356bn in the .......

    News 10 January 2017

  • Firm nabs credit vet

    Ares Management has hired Scott Graves as a partner in the firm's private equity group, based in Los Angeles. Graves will lead the Ares special situations funds platform as portfolio manager and head of distressed.

    Graves' primary responsibilities will include overseeing investments within the special situations strategy and expanding Ares' distressed capabilities across the firm. Additionally, he will serve as a member .......

    Job Swaps 10 January 2017
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