ABS

  • Payment history scrutinised

    The ability and willingness of catastrophe bond issuers to pay claims in a timely manner continue to be questioned, according to S&P. To test the industry's concerns, the agency identified 13 cat bonds that made claims payments following the occurrence of covered events. Except for one case where the loss payment was dragged out by the reinsured, it saw no .......

    News 1 September 2016

  • Euro secondary stable

    The European securitisation secondary market remained stable throughout August and that looks unlikely to change in the run up to the US holiday on Monday.

    For the most part 2016 followed a traditional pattern in August across ABS/MBS - liquidity was thin and activity was patchy, with BWICs few and far between. UK non-conforming/buy-to-let paper saw the most demand, which .......

    SCIWire 1 September 2016

  • Receivables platform bolstered

    Demica has appointed Daniel Kustrin as chief technology officer, responsible for overseeing the growth and development of the firm's proprietary financing platform. Reporting to Demica ceo Matt Wreford, he is expected to play a key role as the firm invests significantly in new product development in response to client demand.

    Kustrin was previously global head of technology at Cardano Risk .......

    Job Swaps 31 August 2016

  • Auto finance growth to continue

    EMEA auto ABS performance should stay strong, says Moody's in the first of its new EMEA auto ABS sector update reports. The new quarterly reports will provide commentary on macroeconomic factors and regulation that affect EMEA auto ABS, new ratings and rating actions, as well as new issuance and performance trends.

    Some countries are set to outperform others as a .......

    News Round-up 31 August 2016

  • New Chinese structure 'credit positive'

    The introduction of a new type of asset-backed note in China which incorporates a trust structure is credit positive for the fledgling sector, says Moody's. The first such deal was issued by International Far Eastern Leasing Co in June and was backed by lease receivables.

    Asset-backed notes with a trust structure provide better asset ring-fencing protection for investors than was .......

    News Round-up 30 August 2016

  • Secondary education

    Liquidity, accurate valuations could stabilise sector

    The first half of 2016 brought several challenges for the marketplace lending industry in the US, with the Q2 results of many platforms confirming falling origination volumes and revenues, largely due to a pullback from investors. While this may raise wider concerns about the viability of the sector, some participants believe that the reason for the downturn is not a .......

    News Analysis 29 August 2016

  • Auto ABS methodology finalised

    Scope has published its final auto ABS rating methodology, confirming that it is largely unchanged from the proposals the agency set out last month. The approach relies on transaction-specific input assumptions to allow for larger rating and transaction differentiation, even when transactions have the same originator or are based in the same country.

    The agency adds that it applies a highly granular .......

    News Round-up 26 August 2016

  • BRAIS acquisition closed

    Bloomberg has completed its acquisition of Barclays Risk Analytics and Index Solutions (BRAIS) from Barclays (SCI 17 December 2015). The transaction includes the widely-used Barclays fixed income benchmark indices, BRAIS strategy indices and the intellectual property of the POINT portfolio analytics solution.

    The benchmark indices will be co-branded 'Bloomberg Barclays Indices' for an initial period of five years. Bloomberg will .......

    Job Swaps 25 August 2016

  • Call variability observed

    Most subprime auto ABS issuers have exercised clean-up calls in a relatively efficient manner, calling deals at the clean-up call threshold or within 1-3 months after, according to a recent Wells Fargo study. However, some variability among issuers has emerged since the ABS market normalised by end-2011 that may need to be accounted for when valuing bonds.

    Wells Fargo structured .......

    News 25 August 2016

  • Nordea completes synthetic deal

    Nordea Bank has sold a synthetic securitisation referencing €8.4bn in SME and corporate loans. Investors have taken notes linked to the junior credit risk of the portfolio.

    The synthetic structure means no assets will be derecognised from Nordea's balance sheet and Nordea will continue to service the loans. The risk-sharing structure does mean that the bank's CET1 ratio is enhanced, .......

    News 25 August 2016

  • Singular circumstances

    Regulatory changes fuelling rise of 'special situations'

    European banks are fundamentally changing the way they structure and sell securitisations. A rise in bilateral trades and capital relief trades - which, along with increasing non-core asset disposals, is leading some to apply the special situations moniker to the sector - is largely being driven by regulatory changes.

    One of the main trends in European ABS over the last .......

    News Analysis 25 August 2016

  • Zero floor inserted

    Santander has amended the transaction documents for Bilkreditt 6, its 2014 Norwegian auto loan ABS, to ensure that the interest payable to noteholders is subject to a zero floor. The firm says that as a result of negative Euribor rates, there is a risk that the interest rate on the notes could fall below zero. It adds, however, that the .......

    News Round-up 24 August 2016

  • Willis ceo announced

    Willis Re has appointed Chris McDowell as ceo of Willis Re Bermuda. On 1 January 2017, he will officially succeed Michael Harden, who is being made president of Willis Re Asia Pacific.

    McDowell joins from Aon Benfield, where he was ceo of global re-specialty in Bermuda. He will now report with his team to Willis Re Specialty.

    Harden was former .......

    Job Swaps 24 August 2016

  • ABS syndicate head replaced

    James Gray has been appointed head of ABS syndicate at Deutsche Bank. The promotion sees him move up from his role in the bank's ABS sales team, where he was covering, the UK, Netherlands and the Nordic countries. Gray replaces Bilal Husain, who moved to BNP Paribas last month (SCI 27 July).

    .......

    Job Swaps 23 August 2016

  • SF heads announced

    US Bank has hired Joe Nardi to lead its global structured finance group, providing services that support its MBS and ABS operations. He will oversee a staff of approximately 200 employees throughout six locations across the US.

    Nardi previously served as head of capital markets structured finance (CMSF) for Wilmington Trust. Prior to his work at Wilmington, he served as .......

    Job Swaps 23 August 2016

  • FFELP SLABS 'info lacking'

    Model risk remains high and collateral transparency remains limited in FFELP student loan ABS, say Wells Fargo structured product analysts. Inconsistency among the rating agencies leads the analysts to recommend investors wait for rating actions before anticipating relative value opportunities.

    "Recent rating agency actions and commentary in the FFELP student loan ABS sector have left us somewhat puzzled," say the .......

    News 23 August 2016

  • ECON amendments weighed

    The European Parliament's ECON committee recently published 526 amendments to the proposed new European securitisation regulations. While the additional amendments include proposals for further tightening of the rules, there are also many amendments that could take the regulation in a more positive direction.

    The latest suggested changes are in addition to the 153 amendments included in the two draft reports .......

    News 23 August 2016

  • JPMorgan shakes up syndicate

    JPMorgan has formed a new credit product development team, which will be headed by Ryan O'Grady and comprise members of the current credit markets team. Although currently co-head of the bank's global syndicate team, O'Grady's new role will require him to focus solely on the international syndicate business. He will report to his co-head counterpart, Bob LoBue.

    In addition, following .......

    Job Swaps 23 August 2016

  • FFELP notes upgraded

    Moody's has upgraded 14 classes of notes and affirmed eight additional tranches across 19 FFELP student loan ABS transactions sponsored by Nelnet after the agency reduced its expected loss projections. The actions come after Moody's originally placed a batch of the notes on review for downgrade in June, in line with its new rating approach for the asset class.

    The reduced loss .......

    News Round-up 22 August 2016

  • ILS approach finalised

    AM Best has finalised its methodology for rating insurance-linked securities and insurance-linked structures. The 'Best's insurance-linked securities& structures methodology' (BILSM) offers insight into information requirements, key rating considerations, risk modelling and surveillance activities that are generally applied by the agency to rate ILS transactions. Its idealised issue default matrix and idealised issuer default matrix are included within the BILSM.

    AM .......

    News Round-up 19 August 2016

  • Aon appoints Asia director

    Aon has appointed Les Collett as regional director for structured credit and political risk, based in Hong Kong. He was previously at Willis Towers Watson, where he was an executive director.

    Collett will report to Miles Johnstone, who is head of structured credit and political risk for Asia. Collett has previously worked at Standard Bank, Calyon, HSH Nordbank, Bankgesellschaft Berlin .......

    Job Swaps 18 August 2016
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