ABS

  • 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

  • Punch acquisition agreed

    Heineken UK has agreed a back-to-back deal with Patron Capital vehicle Vine Acquisitions to acquire Punch Securitisation A, which is secured by approximately 1,900 pubs across the UK. The move follows Vine Acquisitions' recommended cash offer of 180p per share for Punch Taverns, which operates over 3,000 pubs, valuing the company at £403m.

    Heineken UK will pay an aggregate consideration .......

    News Round-up 22 December 2016

  • EIF in UK CRT first

    The EIF has signed a securitisation guarantee deal with RBS, providing capital relief on a £432m portfolio of UK SME and mid-cap loans in the healthcare sector. It is the EIF's ninth capital relief trade since 2015 but its first in the UK.

    EIF's guarantee allows RBS to release capital on a portfolio of over 1,900 loans. The freed-up capital .......

    News Round-up 22 December 2016

  • ED appoints new ceo

    The European DataWarehouse (ED) has appointed Christian Thun as ceo, effective from 1 January 2017. He joined ED a year ago as coo (SCI 4 January) and has been responsible for leading data management, customer account management and research.

    Prior to joining ED, Thun spent 14 years at Moody's Analytics. He has also worked for Baetge & Partner and for .......

    Job Swaps 21 December 2016

  • Upwardly mobile

    Debut mobile ABS could be first of many

    The first UK mobile handset securitisation closed in November, signalling the beginning of a burgeoning mobile ABS sector in Europe. The £125m private deal was backed by consumer loans for the purchase of Virgin mobile handsets and arranged by Royal Bank of Canada, which worked with Virgin Mobile's owner, Liberty Global, to open up a much-desired asset class to a .......

    News Analysis 21 December 2016

  • State rescue?

    Nationalisation could delay BMPS securitisation

    The Italian parliament has approved €20bn to prop up the country's most fragile banks while it readies a possible state rescue of Banca Monte dei Paschi di Siena (BMPS), its third largest lender. The parliamentary approval follows scepticism expressed by Atlante II over the terms of a bridge loan that is key to BMPS' planned €9.2bn NPL securitisation.

    The senior .......

    News Analysis 21 December 2016

  • Further FFELP ABS extended

    Navient has amended the transaction agreements for US$170m of ABS bonds backed by FFELP student loans. The amendments extended the legal final maturity date on the B tranches of SLC Student Loan Trust 2005-3, SLC Student Loan Trust 2006-1 and SLM Student Loan Trust 2005-8 to 2055, as well as the B tranche of SLM Student Loan Trust 2006-7 to .......

    News Round-up 21 December 2016

  • MPL ABS 'compares well' in 2016

    Despite significant turbulence earlier in the year, marketplace lending ABS has maintained steady growth and better or similar performance than other areas of the consumer loan ABS sector, according to JPMorgan ABS analysts. They add that the marketplace lending ABS sector has also been one of the fastest growing in ABS, starting with US$3.3bn in 2013 from three programmes to .......

    News 20 December 2016

  • Lower credit MPL deal prepped

    SoFi is readying its thirteenth rated student loan securitisation, which is expected to be sold in a privately negotiated transaction. The US$130.66m ABS, dubbed SoFi Professional Loan Program 2016-F, is backed by refinanced student loans originated through its online platform and is unusual in that a substantial proportion of the loans have lower credit scores than its previous transactions.

    Moody's .......

    News Round-up 19 December 2016

  • Insurance merger agreed

    Fairfax Financial Holdings and Allied World Assurance Company Holdings have entered into a merger agreement, pursuant to which Fairfax will acquire all of the outstanding registered ordinary shares of Allied World. Based on Friday's closing stock price for Fairfax of C$614.45, Allied World shareholders will receive a combination of Fairfax subordinate voting shares and cash equal to US$54 per Allied .......

    Job Swaps 19 December 2016

  • Proving compliance

    Demonstrating significant risk transfer discussed

    How to demonstrate significant risk transfer (SRT) was a hot topic at SCI's Capital Relief Trades Seminar last month. Panellists discussed the importance of having robust governance and risk management processes in place, as well as what to avoid when preparing to execute a capital relief transaction.

    Articles 243 and 244 - which correspond to traditional (cash) and synthetic securitisations .......

    Talking Point 19 December 2016

  • ABCP performance to remain strong

    European ABCP conduit performance is expected to remain strong next year, reflecting the sound credit quality of the vehicles' sponsors and liquidity providers, Moody's says. Meanwhile, Fitch expects demand for US ABCP issuance to continue to be stable, despite regulatory changes related to money fund reforms and risk retention.

    "In 2016, the last partially supported European conduit was converted to .......

    News Round-up 16 December 2016

  • Learning by doing

    Issuers weigh capital relief opportunities and challenges

    Capital relief trades, also called risk sharing trades, can provide issuing banks with several advantages. However, the transactions are not always well understood by the wider market and even those banks that are involved are learning lessons with each passing deal.

    Nordea Bank dipped its toe into the capital relief trade space earlier this year, making a splash with its .......

    News Analysis 16 December 2016

  • 'Mixed effects' from rate hikes

    The US Federal Reserve has raised interest rates from 0.25% to a range of 0.50%-0.75%, which will have varied implications for structured finance, according to Moody's. The rating agency adds that it expects the Fed to raise rates three more times in 2017 to 1.25%-1.50% year-end.

    Moody's comments that US consumers are generally "well-positioned to cope with rising debt expenses .......

    News Round-up 15 December 2016

  • ABSPP external managers cut

    The ECB's governing council has decided that the ABSPP should now be fully implemented by national central banks, rather than relying on the support of external managers. This is a change which was planned when the programme was first launched.

    As of 1 April 2017, Nationale Bank van België/Banque Nationale de Belgique, Deutsche Bundesbank, Banco de España, Banque de France, .......

    News Round-up 15 December 2016

  • CNL expectations recalibrated

    Moody's has taken rating actions on four TCF Auto Receivables Owner Trust transactions issued in 2014 through 2016, affecting approximately US$944m of ABS bonds. The move reflects a change in the calculation of net loss from that used in previous ratings for the transactions.

    Specifically, the agency has upgraded one security, downgraded two securities and affirmed the ratings of 17 .......

    News Round-up 15 December 2016

  • NPL ABS volumes gauged

    Current global non-performing loan assets could translate to potential securitisation volumes of US$270bn-US$900bn, assuming a 15%-50% discount to the par value, according to S&P estimates. However, given that new NPLs may only arise as institutions raise capital to absorb losses, the figure could be much larger.

    NPL securitisations have historically involved mortgage assets. However, with the recent commodities bust and .......

    News 15 December 2016

  • Euro issuance drops

    €40.2bn of securitised product was issued in Europe in 3Q16, according to AFME's latest securitisation data report. This represents a decline of 46.5% from 2Q16 (€75bn) and a decline of 30.3% from 3Q15 (€57.6bn).

    Of the €40.2bn issued, €16bn was placed (representing 39.8% of issuance), compared to €29.3bn placed in 2Q16 (representing 39.1%) and €18.6bn placed in 3Q15 (representing 32.3%). .......

    News Round-up 15 December 2016

  • Euro secondary unmoved

    The Fed's announcement yesterday appears to have had little effect so far as the European securitisation secondary market resolutely sticks to recent patterns.

    There continue to be pockets of activity across the ABS/MBS secondary market. Tone generally remains positive and spreads unchanged with the exception of Portuguese paper, which continues to edge wider.

    However, CLOs are busier in comparison with .......

    SCIWire 15 December 2016

  • Second Salisbury prices wider

    Lloyds has closed a capital relief trade referencing a £2.1bn granular portfolio of UK SME loans. The 10-year Salisbury II Securities 2016 deal pays Libor plus 12%, above the plus 10.25% print of the lender's previous Salisbury Securities 2015 transaction.

    The £789.4m 2015 deal was also a granular synthetic SME securitisation. The 2016 deal, however, is more diversified, with 40% .......

    News 14 December 2016

  • Climate recommendations welcomed

    Recommendations for improved quantitative and qualitative climate-related disclosures could increase the importance of climate-related risks and opportunities for corporations and investors alike, says S&P. Climate-related financial disclosures should help investors assess risk and improve allocation of capital.

    The recommendations are the result of a year's work by the Task Force on Climate-Related Financial Disclosures (TCFD). The task force was created .......

    News Round-up 14 December 2016
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