ABS

  • 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

  • Japan, China outlooks stable

    Moody's outlook for the performance of assets backing consumer-related ABS and RMBS in Japan is stable, with defaults and delinquencies to remain low and the credit quality of loans backing new deals expected to be strong. The credit quality of new ABS and RMBS in China should also be good, although there are grounds for concern.

    For Japanese ABS, low unemployment .......

    News Round-up 10 January 2017

  • Euro secondary sporadic

    Activity remains sporadic across the European securitisation secondary market.

    ABS/MBS continues to be as quiet as it was into year-end with only a few flash BWICs and patchy bilateral trading in major names being seen over the past week. However, positive sentiment and pent-up demand mean that spreads remain flat to slightly narrower in the year so far.

    CLOs have .......

    SCIWire 10 January 2017

  • Firm boosts SF sales team

    StormHarbour has hired Christos Danias as md of credit sales for ABS and CLOs. He joins from Cantor Fitzgerald, where he was md of structured credit for Europe, also focusing on ABS and CLO sales and trading. Prior to Cantor Fitzgerald, Danias was head of CDOs, Europe for BNP Paribas and before that worked in CDOs for Credit Suisse.

    .......

    Job Swaps 9 January 2017

  • Aeolus acquisition closed

    Elliott Management Corp funds Elliott Associates and Elliott International have acquired a controlling interest in Aeolus Capital Management and its affiliated entities (SCI 2 November 2016). Elliott acquired its controlling interest from Aeolus founder Peter Appel and Allied World Assurance Company, an investor in Aeolus since December 2012.

    Appel has retained a significant minority interest in Aeolus and will serve .......

    Job Swaps 9 January 2017

  • CMBS head promoted

    DBRS has appointed Christian Aufsatz to a new role as md, head of European structured finance. He will also remain head of European CMBS. Based in London, he will be responsible for managing the ratings business for new securitisations and surveillance of outstanding structured finance transactions.

    Aufsatz joined DBRS in 2015 as head of European CMBS and has 15 years .......

    Job Swaps 9 January 2017

  • Rating agency swipes ABS vet

    Morningstar Credit Ratings has hired Norman Last as director of business development for ABS ratings services. He will head the agency's business development strategy for non-real estate ABS and CLOs.

    Last will be based in Morningstar's New York office and will report to the firm's coo Joe Petro. Most recently, he was md and head of ABS at Scotiabank, where .......

    Job Swaps 9 January 2017

  • Insurer inks rival buyout

    Arch Capital has completed its acquisition of United Guaranty Corporation (UGC) from American International Group (AIG) (SCI 16 August 2016). The acquisition of UGC expands Arch's existing mortgage insurance businesses by combining UGC's position as the market leader in the US private mortgage insurance industry and helps to diversify its business profile and customer base.

    Arch Capital comments that the expansion of .......

    Job Swaps 6 January 2017

  • Issuance estimates revised upwards

    Most structured finance markets and their credit conditions seem favourable and in some cases ideal going into 2017, according to S&P's 2017 outlook. The agency has therefore increased its issuance forecast since October, projecting US$365bn-US$375bn total issuance for the US, with China expected to see the second largest issuance at an estimated US$140bn. The global total for 2017 is expected .......

    News Round-up 5 January 2017

  • Larger cat bonds proliferating

    Nearly US$2bn in catastrophe bonds was issued in 4Q16, according to PCS figures. The size of three of the quarter's four transactions exceeded US$200m, indicating a continued trend towards larger cat bonds from experienced sponsors.

    The largest issuance of the quarter and of the year was the US$750m Galilei Re deal, which was brought by a privately managed entity (XL .......

    News Round-up 5 January 2017

  • New lows for prime chargeoffs

    US prime credit card ABS chargeoffs reached a new low of 2.33% in December, says Fitch. Retail credit card metrics were mixed.

    The rating agency's prime credit card chargeoff index is now 10bp below its previous low record of 2.43%, which was reached in October 2016. It is 10% lower year-over-year and nearly 80% lower than the high reached in September .......

    News Round-up 4 January 2017

  • Law firm nabs SF vet

    Norton Rose Fulbright has hired Patrick Dolan as a partner to the firm, joining from Dechert. He focuses his practice on ABS and MBS - often with innovative structures - representing warehouse lenders, issuers, underwriters, investors and multi-seller commercial paper conduits. Dolan has worked on financings and securitisations of various asset types, including PACE bonds, tax liens, structured settlements, marketplace .......

    Job Swaps 4 January 2017

  • 'Basel 4' meeting postponed

    A meeting of the Basel Committee group of central bank governors and heads of supervision (GHOS), originally planned for early January, has been postponed. The Committee says that more time is needed to finalise the Basel 3 framework's final calibration, before the GHOS can review the package of proposals, although it expects to complete this work "in the near future".

    News Round-up 4 January 2017

  • Cash versus synthetic weighed

    Balance sheet securitisations - whereby balance sheet relief is achieved via true sale - are gaining traction in Europe (SCI 25 August 2016). The different motivations for executing a cash versus a synthetic capital relief trade were discussed recently at SCI's Capital Relief Trades Seminar.

    "Generally, we've come to see balance sheet securitisations get far more relevant and important recently," .......

    News 4 January 2017

  • Slew of risk transfer trades close

    A handful of capital relief trades closed in late December, including an unusual deal referencing a portfolio of auto loans. While this transaction was unfunded, the other deals involved the issuance of credit-linked notes.

    The auto transaction, known as Project Phaeton, references a £571m five-year replenishing portfolio of loans to private retail and commercial customers for the finance and lease .......

    News 3 January 2017

  • 'Transparency over risk retention' advised

    Securitisation of European SME loans would not necessarily lead to lower credit standards, according to the BIS. In a recent paper, analysts at the bank also suggest that while risk retention rules might be necessary for larger transactions due to the presence of moral hazard, such retention rules aren't necessary for smaller firms.

    The research from BIS explores the presence .......

    News Round-up 3 January 2017

  • Spanish SRT deal completed

    Banco Santander has closed its first Spanish unsecured consumer loan significant risk transfer securitisation of 2016. The €1bn 15-year revolving FT Santander Consumo 2 deal comprises six classes of notes.

    According to Steve Gandy, md at Santander Global Corporate Banking, the structure is a cash securitisation that "allowed us to reduce RWAs assigned to the loans by selling the bottom .......

    News 23 December 2016

  • SLABS downgrades trump upgrades

    Moody's has this month concluded its review of transactions potentially affected by changes to its FFELP ABS methodology, published in the summer (SCI 15 June). Of the 504 tranches in 194 transactions that the agency took rating action on, there were 262 downgrades, 133 confirmations and 109 upgrades.

    The average downgrade magnitude was 5.2 notches and the average upgrade magnitude .......

    News Round-up 23 December 2016

  • RFC issued on FX risk

    S&P has requested comments on its methodology and assumptions for FX risk in structured finance transactions. The proposed FX risk criteria provide rating-specific asset depreciation stress assumptions for the behaviour of FX rates in global structured finance transactions with unhedged or partially hedged currency exposures.

    FX risk in securitisations arises when the asset cashflows and liabilities are denominated in different .......

    News Round-up 23 December 2016

  • Fleet ABS reviewed on criteria change

    Moody's has published its updated methodology for rating rental car and rental truck ABS, following an RFC on the approach (SCI 13 July). The agency has updated how it analyses certain risk factors - such as the sponsor probability of default, fleet composition, disposal value calculation, correlation and default risk horizon - while leaving the general framework unchanged. The revised .......

    News Round-up 23 December 2016

  • Property prospects

    Hiring remains flat, but CMBS up-tick possible

    CMBS could provide a hiring boost in the US in 2017, while structured finance recruitment is likely to remain mostly flat globally. In the UK, senior hires are few and far between, but banks are still recruiting junior executives to develop smaller structuring teams.

    Chadrin Dean, president and managing partner for Sandford Rose Associates,
    Integrated Management, says that over the last .......

    News Analysis 23 December 2016
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