ABS

  • Gas-alternative recoveries analysed

    Continued low gas prices have reduced Americans' appetite for hybrid-electric and all-electric vehicles. As a result, the share of gas-alternative vehicles in the collateral pools backing auto lease ABS has declined, according to Moody's.

    The agency reports that these trends are pushing recovery values, as well as residual value down for gas-alternative vehicles. "We expect these trends to continue because .......

    News Round-up 28 October 2016

  • Calypso cat bonds upgraded

    S&P has upgraded the Calypso Capital II class A and class B notes, following the advent of their final risk period and consequent lack of further resets. The ratings for the class A and B notes have been raised from double-B minus to double-B and from single-B plus to double-B minus respectively.

    The AXA sponsored notes from October 2013 no .......

    News Round-up 27 October 2016

  • Timeshare default repurchases climb

    Timeshare ABS default rates are rising and there is a growing trend of default repurchases and substitutions, although Wells Fargo analysts believe investors should be well protected. Borrowers are increasingly being advised not to make payments on their timeshare loans, which chimes with observations of weaker trends in consumer credit performance in other consumer ABS sectors.

    Default repurchases and substitutions .......

    News 27 October 2016

  • Euro ABS/MBS quiet

    This week has continued to be slow across the European ABS/MBS secondary market.

    "There's nothing going on," says one trader. "UK half-term means a lot of people are out this week and anyone who is here will be looking at primary where there are few interesting deals marketing."

    Secondary supply has been more limited than in recent weeks, the trader .......

    SCIWire 27 October 2016

  • Safe haven?

    Securitised sovereign bonds could bring economic stability

    A European bond comprised of securitised sovereign bonds from multiple European countries could help bring funding and economic stability to the eurozone. This is according to a group of leading economists, who have drafted a proposal for so-called European Safe Bonds, or ESBies.

    The proposal highlights that the euro area lacks a union-wide safe asset, the absence of which contributes .......

    News Analysis 26 October 2016

  • Landmark SME deals closed

    The EIB has disclosed its recent participation in two European SME securitisations - ROOF Leasing Austria Compartment 2016 and Sinepia (see SCI's new issue database). The former deal is the first public Austrian ABS in which the EIB Group has participated, while the latter benefits from support from the EU budget guarantee under the European Fund for Strategic .......

    News Round-up 25 October 2016

  • APAC ratings affirmed

    Fitch has affirmed the long-term ratings on 161 publicly-rated Asia-Pacific structured finance (SF) and structured credit (SC) tranches in 3Q16. The agency has also upgraded six bonds, placed one on rating watch negative and downgraded another.

    Four of the upgrades were to Australian SF transactions, resulting from better-than-expected performance in terms of losses, credit enhancement (CE) build-up and the availability .......

    News Round-up 25 October 2016

  • Utilisation drop hits container deals

    Two container ABS deals - BEACN 2012-1A and GCA 2013-1A - have been called so far this month, removing about US$300m of bonds from the market. Both of the transactions had experienced declines in average utilisation rate and average portfolio lease rate, which likely contributed to the issuers' decision to call them.

    KBRA recently noted that average utilisation in BEACN .......

    News 24 October 2016

  • Strategic relationship formed

    New Ocean Capital Management, together with its major shareholders XL Group and Stone Point Capital, has announced a newly formed strategic relationship with Mitsui. Mitsui has committed an initial US$100m of proprietary investment capital to New Ocean's private fund platform on a multi-year basis, and will endeavor to source additional capital by 2020.

    As part of this strategic transaction, Mitsui .......

    Job Swaps 24 October 2016

  • Ratings complaints prepped

    The US Department of Justice (DOJ) is preparing a civil complaint against Moody's in the US District Court for the District of New Jersey, alleging certain violations of the Financial Institutions Reform, Recovery and Enforcement Act in connection with ratings assigned to RMBS and CDOs in the period leading up to the 2008 financial crisis. Moody's disclosed in its Q3 .......

    Job Swaps 24 October 2016

  • Rights issues

    Tax lien ABS growing, but third-party servicers scarce

    The US tax lien ABS sector has grown steadily since 2014 in terms of both issuance and investor interest. While it provides several opportunities for investors, its growth could be hampered by unique challenges, in particular a lack of third-party servicers with sufficient operational capability.

    The expansion of tax lien ABS in the US has been most apparent in the .......

    News Analysis 24 October 2016

  • Arcus makes first addition

    Lloyd's of London syndicate Arcus Syndicate 1856, which is fully capitalised with funds managed by the Credit Suisse ILS investment management team, has appointed Katie Higgon as an underwriter. She was previously at Aon Benfield, where she was a broker and client manager on the North American property team.

    Higgon will report to Nicky Payne. She is the firm's first .......

    Job Swaps 21 October 2016

  • China tests 'may lie ahead'

    While China's slowing economic growth has coincided with a slowdown in CLO activity in the country, other Chinese securitisation sectors have grown rapidly this year. However, despite strong issuance and no significant performance deterioration, S&P notes that there remain several concerns over the market's future and place as a viable funding alternative.

    China is the world's second-largest securitisation market in .......

    News 20 October 2016

  • Euro secondary unmoved

    The European securitisation secondary market remains unmoved by continuing strong new issue volumes.

    The primary market is still attracting the majority of focus, but secondary continues to tick over with pockets of trading throughout euro and sterling ABS, CLOs and MBS. An overall slight buying bias is ensuring that tone remains positive and secondary spreads are unchanged across the board .......

    SCIWire 20 October 2016

  • Insurers test blockchain potential

    A group of insurers and reinsurers are exploring the potential of distributed ledger technologies to better serve clients. To this end, they have launched the Blockchain Insurance Industry Initiative B3i.

    The insurance industry and ILS market have been enthusiastic about the prospects of blockchain for some time, with Allianz Risk Transfer and Nephila Capital recently piloting the use of blockchain .......

    News Round-up 19 October 2016

  • Structuring alpha

    Robert Allard, founding partner and ceo at Firebreak Capital, answers SCI's questions

    Q: How did Firebreak Capital become involved in the securitisation market?
    A:     Firebreak Capital is categorised as a private debt fund, but this means different things to different people. Our background is in structured products (including securitisation) and we're seeking to employ this skill-set across the private debt universe. A more appropriate label for the firm is a structured private debt .......

    The Structured Credit Interview 18 October 2016

  • Chinese deals add to ABS traffic

    Recent weeks have seen a flood of auto ABS deals announced (see SCI pipeline), but the trend is not constrained to the US and Europe, with Toyota now in the market with its first Chinese ABS of the year. It is the company's second Chinese deal overall and the first to be rated by Moody's.

    The CNY3bn Toyota .......

    News Round-up 18 October 2016

  • Model error disclosed

    Fitch has disclosed that interest payments to the class E and F notes of SCF Rahoituspalvelut I (Kimi 1) were incorrectly modelled in its initial rating analysis of the Finnish auto ABS as senior to clearing the implied principal deficiency ledger (PDL). Correct modelling would have resulted in different model-implied ratings for two classes: one notch higher for the class .......

    News Round-up 18 October 2016

  • Euro secondary patterns persist

    Trading patterns in the European securitisation secondary market seen towards the end of last week are continuing into this.

    The primary market remains the main focus, but flurries of BWICs continue to bolster secondary activity. A few DNTs aside, line items in all sectors and parts of the capital structure continue to trade well. Despite some skittishness in broader markets secondary .......

    SCIWire 18 October 2016

  • Cross-sector SLABS criteria finalised

    Moody's has published its new cross-sector methodology for rating student loan ABS backed by pools consisting of both FFELP and private student loans (PSLs). The agency subsequently took action on 21 tranches across 13 transactions, affecting approximately US$506.5m of securities.

    Moody's affirmed 13 tranches across seven transactions (accounting for US$266.5m), upgraded six tranches across five transactions (US$161.2m) and downgraded two .......

    News Round-up 17 October 2016

  • Scaling up

    Platforms eager to issue further marketplace ABS

    Funding Circle and Zopa intend to tap the securitisation market on a regular basis, following their debut transactions this year. Both platforms recently discussed their experiences issuing ABS at marketplace lending conference Lendit and expressed enthusiasm for pursuing the funding method further.

    Funding Circle issued its inaugural SBOLT deal in April, backed by SME loans originated through its online platform. .......

    News Analysis 14 October 2016
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