ABS

  • Reclassification challenges outlined

    A number of financial institutions have reclassified their structured finance books in accordance with IFRS 9, in order to carry out parallel runs in 2017. Although the formal implementation of IFRS 9 is not due until 2018, firms hope that the early implementation of infrastructure and audit trails may eliminate capital management and volatility of provisioning risks, which are more .......

    News 30 June 2016

  • Euro ABS/MBS normalising

    European ABS and MBS have been quick to shrug off Brexit worries, with activity building up again this week and more BWICs scheduled for today.

    "The market seems to be over the shock of last week. There was a drop on Friday morning but things started trading again on Tuesday and yesterday was pretty much back to normal," says one .......

    SCIWire 30 June 2016

  • Recruitment rocked

    Brexit compounding ABS hiring issues

    The recruitment outlook for structured finance took a potentially big blow when the UK decided to leave the EU last week in its referendum vote. With hiring activity already at a moribund pace this year, concerns about immigration limits and capital outflows are weighing further on human resources both in Europe and the US.

    The surprise Brexit result sent shockwaves .......

    News Analysis 30 June 2016

  • Settlement reinvestment options weighed

    Current holders of non-agency RMBS from 512 Countrywide deals have finally received almost US$8bn in cash payments, five years after the original settlement (SCI passim). As investors look to put the cash back to work, Morgan Stanley analysts believe other securitised products would make a natural destination for reinvestment.

    The Countrywide settlement covers breaches of certain representations and warranties as .......

    News 29 June 2016

  • Debut cell phone deal nears

    Fitch has assigned preliminary ratings to the first securitisation to be backed by cell phone contracts in the US. At the top of the capital structure, the US$1bn of class A notes in Verizon Owner Trust 2016-1 have been assigned an expected triple-A rating.

    The deal also comprises US$84.52m double-A rated class B notes and US$84.51m single-A class Cs. S&P is also expected .......

    News Round-up 29 June 2016

  • Solar value proposition discussed

    KBRA says that the phenomenal recent growth of distributed solar photovoltaic (PV) generation in the US is largely due to the increasing affordability of solar - with PV systems now priced at approximately US$3.5/watt, a reduction of more than 50% in the past five years - and solar developers offering creative financing mechanisms, such as power purchase agreements (PPAs) and .......

    News Round-up 29 June 2016

  • Energy expert picked up

    Crédit Agricole has appointed Gerard Vincitore as md in its structured finance advisory group for the Americas. He joins as part of the bank's larger corporate and investment banking arm, where he will head up advisory activities in the North American power and utilities sector and be involved in specific energy-related transactions in the Americas.

    Prior to joining the bank, .......

    Job Swaps 29 June 2016

  • Exchange offer launched

    Markit has commenced an offer to exchange any and all of the outstanding US$750m aggregate principal amount of 5.000% Senior Notes due 2022 issued by IHS for up to an aggregate principal amount of US$750m of new 5.000% Senior Notes due 2022 to be issued by Markit and cash. For each US$1,000 principal amount of existing IHS notes tendered, eligible .......

    Job Swaps 29 June 2016

  • SF upgrades keep momentum

    The global structured finance upgrade rate reached a record high in 2015, according to S&P. Although the downgrade rate was still higher at 11.2% last year, the upgrade rate increased to an all-time high of 9.8% in 2015 and a jump from 8.4% in 2014.

    Downgrades were up from 10% in 2014, but still presented a slow-down in growth for all but .......

    News Round-up 28 June 2016

  • Cross-border first for Korean ABS

    Hyundai Commercial has completed the first cross-border cash securitisation of auto loans to obligors in Korea. The US$250m Top Commercial Auto I ABS has two equally-sized tranches of floating rate notes, each rated Aaa by Moody's.

    The underlying pool only includes loans to purchase new commercial vehicles and the transaction benefits from several sources of credit enhancement, as well as .......

    News Round-up 28 June 2016

  • Madden uncertainty to continue

    The US Supreme Court has denied certiorari in the Madden vs Midland Funding case, electing not to review a Second Circuit decision that found state usury laws applied to debt that had been purchased from a national bank (SCI passim). The decision is expected to prolong the legal uncertainty related to the marketplace lending and securitisation industries.

    Other circuits are .......

    News Round-up 28 June 2016

  • Euro secondary sidelined

    Most participants are waiting on the sidelines in the European securitisation secondary market amid broad market volatility.

    Two sessions on from the Brexit vote and liquidity remains thin across the board, but there is yet to be any sign of the tailspin seen in wider markets. Dealers in every sector widened their bids on Friday but other than some opportunistic .......

    SCIWire 28 June 2016

  • False alarm?

    Basel CRT warning played down

    The Basel Committee caused somewhat of a stir earlier this month when it warned banks against increasing their use of capital relief trades (CRTs). However, portfolio risk-sharing transactions are not expected to be affected.

    The Committee's statement specifically warned that CRTs would receive "careful supervisory scrutiny" going forward (SCI 3 June). It also indicated that its response was due in .......

    News Analysis 27 June 2016

  • Brexit effects

    The immediate financial market reaction to the UK's decision to leave the EU has been pronounced, with spreads on senior financials and subordinated CDS indices higher by around 30bp and 70bp respectively. In the European securitisation secondary market, dealer bids were wider across the board at the open, but little trading was seen in the first few hours.

    In the .......

    News 24 June 2016

  • MPL conference line-up confirmed

    Panellists have been confirmed for SCI's Second Annual Marketplace Lending Securitisation Seminar, which is being held on 28 June in New York. The event is being held at Kaye Scholer's offices at 250 West 55 Street.

    The conference programme consists of a series of panel debates focusing on issues affecting the marketplace lending sector. Panel sessions include financing, platform differentiation .......

    News Round-up 24 June 2016

  • Agency recruits trio

    Morningstar Credit Ratings has made a trio of new hires in New York, including Lea Overby as md, leading structured finance research. This position is a newly created role for the agency, which will see Overby head up structured finance initiatives and support its analytical team in MBS, ABS and CLOs.

    Prior to moving, her most recent role was as executive .......

    Job Swaps 24 June 2016

  • PACE, solar deals come to fore

    The US solar and PACE ABS market has been busy this week, led by Spruce Finance bringing the largest deal so far to encompass unsecured residential energy efficiency loans and retail instalment contracts. The US$83.78m dual-tranche Spruce ABS Trust 2016-E1 received investment grade ratings from Kroll Bond Rating Agency.

    The class A notes were assigned a single-A rating by the agency. The .......

    News Round-up 23 June 2016

  • Euro secondary settles down

    After a flurry of activity over the past two sessions the European securitisation secondary market has settled down today to await news from the UK EU referendum.

    Following a quiet Monday volumes picked over the next two days sparked by the increase in BWIC activity noted on Tuesday and continuing improvement in wider markets. Flows were relatively healthy yesterday too .......

    SCIWire 23 June 2016

  • Sufficient scrutiny?

    MPL verification enhancements sought

    The resignation of Lending Club ceo Renaud Laplanche and the subsequent disclosure of 'control deficiencies' at the platform shocked the marketplace lending sector. Investors have pulled back and getting them onside again is dependent on demonstrating that the market can be open and transparent.

    Lending Club has been a pioneer in marketplace lending ABS and was the first platform to .......

    News Analysis 22 June 2016

  • Stepping up

    Double boost for FFELP SLABS market

    Industry efforts to address the FFELP student loan ABS maturity issue have stepped up a gear with the launch of Nelnet's investor forum via the DealVector platform (SCI 17 June). The market received a further boost last week when Moody's released its updated FFELP student loan ABS methodology (SCI 15 June).

    DealVector now has the top two sponsors of FFELP .......

    News Analysis 22 June 2016

  • MPL webinar scheduled

    SCI is hosting a complimentary webinar exploring how the marketplace lending sector is responding to recent developments. The event is being held at 7pm UK time on 23 June, but will also be available to download from the SCI website afterwards.

    The webinar will cover questions raised by Lending Club's recent difficulties, not least the importance of thorough .......

    News Round-up 21 June 2016
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