ABS

  • CDQ development

    Originator consolidation to drive issuance up?

    The €1.47bn Towers CQ transaction, which closed last month, is the first Italian salary assignment loan ABS to be publicly placed in over a year. However, originator consolidation could spur increased volumes in the sector going forward.

    The Cessione del Quinto (CDQ)/Delegazione di Pagamento (DP) business was historically considered 'street' lending and run outside of banks. But, through the intervention .......

    News Analysis 18 July 2016

  • Weighing it up

    European ABS offerings, future in the balance

    The European secondary ABS value proposition is changing. Increasingly, credit is not investors' primary concern as relative value considerations come to the fore, while potential future developments continue to weigh on traders' minds.

    "The market is moving to an investor base that cares much more about relative value, in which case, investors must take a holistic view across asset classes .......

    News Analysis 18 July 2016

  • Foreign demand to drive Indian ABS

    Recent growth in the Indian securitisation market is primarily driven by the Reserve Bank of India's (RBI) policy of priority sector lending, according to S&P. Foreign banks' demand for pass-through certificate (PTC) securitisations is, in turn, partly due to their need to meet new priority sector lending targets. As the country's securitisation market builds a reputation and develops a history .......

    News Round-up 18 July 2016

  • Investment chief replaced

    Peter Schmidt-Fellner is retiring as cio and a director of NewStar Financial, but will remain involved with the firm as an external advisor to its investment committee and risk policy committee. He was a founding member of the firm and has held the role of cio since NewStar's inception in 2004. The board will be reduced in size by one .......

    Job Swaps 18 July 2016

  • Risk expert tapped

    Andrew Davidson & Co has recruited Richard Cooperstein to lead its risk model management. The firm says it will look to utilise his background in developing and implementing investment strategies for structured credit risk, mortgage insurance, financial guarantees and servicing rights with credit risk content.

    Cooperstein was previously treasurer and vp of pricing and asset acquisitions at Ocwen Mortgage Servicing. .......

    Job Swaps 15 July 2016

  • MPL ABS ratings confirmed

    Moody's has confirmed its rating of Ba3 on the class C notes issued by the Prosper-loan backed Citi Held for Asset Issuance (CHAI) 2015-PM1, 2015-PM2 and 2015-PM3 ABS deals. The rating agency had placed the notes on review for downgrade earlier this year due to concerns over an up-tick in delinquencies.

    Moody's has based its rating confirmations on the view .......

    News Round-up 15 July 2016

  • Debt, syndicate teams reshuffled

    CaixaBank has appointed Ainhoa Landa to head its debt capital markets business as part of a broader reorganisation of its debt and syndicate operations. Landa was formerly head of structured bonds syndicate, which will now be taken on by Lorenz Altenburg.

    Landa's appointment sees her replace Maria Castro, who has moved on to lead CaixaBank's funding team. In their new roles, Landa will .......

    Job Swaps 15 July 2016

  • Ownership change lifts ABS ratings

    Fitch has upgraded the Bosphorus Series 2015-A, 2015-B, 2015-C and 2015-D notes, as well as the Bosphorus Series 2012-B, 2012-C and 2012-D notes from triple-B plus to single-A minus. The upgrades are a result of originator Finansbank's ownership change.

    The Bosphorus transactions securitise diversified payment rights. These are payment orders processed by banks which can arise for a variety of .......

    News Round-up 14 July 2016

  • Foreign aid ILS mooted

    London Market Group (LMG) has launched a white paper on an ILS solution for catastrophes in under-insured markets. It says the creation of a Foreign Aid catastrophe Bond (FAB) could provide a more cost-effective approach to catastrophe relief.

    "The idea behind the FAB is a joint initiative between the [UK] government and LMG to provide a cost-effective response to catastrophes .......

    News Round-up 14 July 2016

  • SME joint initiative launches

    The European Investment Fund has teamed up with several national promotional institutions to launch the EIF-NPI Securitisation Initiative (ENSI). The initiative is a risk-sharing platform aimed at providing more funding to European SMEs via the capital markets.

    The ENSI partner institutions alongside the EIF are KfW, bpifrance, CDP, Malta Development Bank Working Group, IFD, ICO and BBB. The EIF says .......

    News Round-up 14 July 2016

  • Euro secondary stays light

    Flows in the European securitisation secondary market continue to be light though sentiment remains positive.

    "It's been pretty quiet in general with little end-user activity and BWICs few and far between," says one trader. "However, everyone for choice is still a better buyer and looking for assets."

    The trader continues: "As with wider credit the tone across ABS/MBS is strong. .......

    SCIWire 14 July 2016

  • Demica boosts origination team

    Demica is continuing to build out its origination team with the addition of three new members. Angel Blanco and Marc Wolf join as origination directors, while Enrique Jiminez becomes senior supply chain finance origination director. All three will report to Demica head of origination Tim Davies.

    Blanco is tasked with originating receivables finance, trade receivables securitisations and supply chain finance .......

    Job Swaps 13 July 2016

  • Citizens hires for SF push

    Citizens Bank has recruited Brent Hazzard as head of structured finance for its commercial banking business. He joins from GE Capital, where he led both the firm's restructuring and distressed debt initiatives.

    Citizens' structured finance group is focused on building relationships with large and mid-tier investment banks, distressed-focus private equity funds and other intermediaries to source senior secured financing opportunities .......

    Job Swaps 13 July 2016

  • ABL vet joins middle market firm

    Monroe Capital has hired asset-based lending veteran Marc Adelson as originations md. He will join Ben Marzouk and Lee Stern in the firm's New York office.

    Adelson has more than 30 years of experience providing financing to middle market companies. He was previously cco at Medallion Financial and president of its asset-based lending business. Before that, he was ceo and .......

    Job Swaps 13 July 2016

  • RFC issued on fleet approach

    Moody's is requesting comments on proposed changes to its methodology for rating ABS backed by rental cars and trucks. The agency expects the proposal to result in rating downgrades of up to one notch for some senior tranches in trusts with lower minimum depreciation rates and weaker historical fleet compositions, and rating upgrades of up to three notches for junior .......

    News Round-up 13 July 2016

  • Negative interest rates hit ETD deals

    Legacy securitisations of Spanish electricity tariff deficit (ETD) debt are effectively charging interest to noteholders in a negative interest rate environment, Moody's reports. In ETD securitisations with floating interest rate notes, the issuer chooses to deduct the interest payment from the value of the outstanding amount of the notes, while maintaining the pass-through payments to noteholders. As a result, the .......

    News Round-up 13 July 2016

  • Markit merger completed

    IHS and Markit have completed their merger to form IHS Markit (SCI passim). The firm begins trading today (13 July) on the Nasdaq Global Select Market under the trading symbol 'INFO'.

    The new 11-member board of directors for IHS Markit consists of: Dinyar Devitre, Ruann Ernst, William Ford, Balakrishnan Iyer, Robert Kelly, Deborah McWhinney, Jean-Paul Montupet, Richard Roedel, James Rosenthal, .......

    Job Swaps 13 July 2016

  • Next steps

    Madden ruling creates landscape of uncertainty

    On 27 June the US Supreme Court decided not to hear the Madden vs Midland case, resulting in a continued lack of clarity surrounding national and state usury rates. The move has led to marketplace lending platforms taking steps to adapt to the ruling, as well as other participants questioning the reasoning behind the case and the effect it will .......

    News Analysis 12 July 2016

  • Card ABS downgrades expected

    As much as 25% of S&P-rated European credit card ABS ratings could be downgraded following the agency's methodology changes to rating the asset class. The rating approach, which became effective from yesterday, has been revised to incorporate S&P's same global methodology for assessing the credit quality of securitised consumer receivables.

    S&P rates approximately 50 European credit card ABS transactions, but no upgrades are .......

    News Round-up 12 July 2016

  • STC risk weights reduced

    The Basel Committee has scaled down the risk weights for 'simple, transparent and comparable' (STC) securitisations and reduced the risk-weight floor for senior exposures from 15% to 10%. The move had largely been expected and, in general, is viewed as catching up with European proposals for the STS securitisation framework.

    "For this topic, the European Commission decided not to wait .......

    News 12 July 2016

  • Euro secondary strengthens

    Supported by the wider market rally the European securitisation secondary market is strengthening and spreads are edging in.

    This week has again started with light flows, but many sectors are now back to around pre-Brexit levels as sentiment continues to improve in line with seeming greater political/central bank certainty. Once more, CLOs are leading the way in terms of both .......

    SCIWire 12 July 2016
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