ABS

  • Insurers' structured holdings slip

    Life insurers held more than US$380bn of structured products securities at the end of 2015, which Wells Fargo analysts note represents a decline of approximately US$20bn from year-end 2014. Insurers' balance sheets actually increased 2%, so the decreased allocation to structured products is even greater on a relative basis.

    As a percentage of total cash and fixed income, structured products' .......

    News 10 May 2016

  • Renewables partner poached

    David Burton has joined Mayer Brown's tax transactions & consulting practice as a partner in New York. He has decades of experience handling a range of US tax matters, particularly in the renewable energy, equipment leasing and asset-backed finance areas, and will lead the firm's renewable energy group in the New York office.

    Burton joins Mayer Brown from Akin Gump .......

    Job Swaps 10 May 2016

  • CIR methodology finalised

    S&P has published its methodology for assigning a rating type specific to the financial obligations that securitisation SPEs enter into with banks or other entities taking on the issuer's credit risk under a contract, such as a swap or liquidity facility. The agency's new counterparty instrument rating (CIR) aims to address an issuer's capacity to meet its financial obligations to .......

    News Round-up 10 May 2016

  • Euro ABS/MBS starts slow

    It was another slow start to the week for the European ABS/MBS secondary market.

    Yesterday's session followed on from those of the previous week with another day of very light flows. Lack of significant primary activity continues to hold back any potential for secondary momentum, though spreads continue to be stable.

    In the absence of any stronger focus Brexit continues .......

    SCIWire 10 May 2016

  • ILS affirmed on resets

    Fitch has affirmed its ratings on five tranches from four catastrophe bonds - Long Point Re III series 2015-1, Alamo Re 2014-1 and 2015-1, and Cranberry Re. The move follows the agency's annual surveillance review of the notes that includes a scheduled evaluation of the natural catastrophe risk, counterparty exposure, collateral assets and structural performance.

    Fitch believes the notes and .......

    News Round-up 9 May 2016

  • NSR mapping approach updated

    Moody's has published its updated methodology for mapping national scale ratings (NSRs) from global scale ratings (GSRs), following a market consultation initiated via an RFC published on 22 June 2015. NSRs are derived from GSRs using country-specific correspondences. The updated methodology introduces specific guidelines for the design of new NSR correspondences, or maps, and changes to existing maps, as well .......

    News Round-up 9 May 2016

  • Lawsuit 'credit negative' for ABS

    A lawsuit filed against Lending Club is credit negative for ABS backed by consumer loans originated through online platforms using a partner bank model, says Moody's. While filed against Lending Club specifically, the outcome of the case could have wider consequences for ABS backed by marketplace loans originated by a range of platforms.

    The case, Bethune vs LendingClub Corporation et .......

    News Round-up 6 May 2016

  • Subprime auto concerns surfacing

    The recent 20-year high in US subprime auto ABS delinquencies is not the main concern for investors in the asset class, according to Fitch. The agency says that the influx of new deals from less established names is a more profound issue right now.

    Investors are apparently concerned that these new deals are intensifying competition too much, which adds to .......

    News Round-up 6 May 2016

  • Marsh recruits risk pro

    Marsh has hired Abbey Sturrock for its political risk and structured credit practice, serving as svp within the firm's public agency group. In this role, Sturrock is responsible for delivering Marsh's advisory and placement capabilities for the public agency sector across the globe, working with entities such as multilateral development banks and export credit agencies. She joins from Berne Union, .......

    Job Swaps 5 May 2016

  • China vehicle guidance assessed

    China's new guidance on used vehicle sales will have a mixed impact on the recovery rates in auto loan ABS, says Moody's. However, the agency believes it will boost the used car market overall.

    The China State Council's new guidance on facilitating the ease of inter-city and inter-provincial used vehicle sales kicks in on 31 May. The rules will scrap current restrictions in .......

    News Round-up 5 May 2016

  • Mobile phone EIP ABS mooted

    As the business model of US wireless carriers moves to further embrace equipment instalment plans (EIPs), they become more likely to issue ABS, says Moody's. Verizon has publically stated its interest in securitisation and there is increased speculation that a deal could be on the cards.

    "We have actually been out there talking to rating agencies, we did a presentation .......

    News 5 May 2016

  • Argentina headwinds outlined

    Tighter economic policies implemented by Argentina's newly elected government could prove challenging to securitisations within the country, according to S&P. This adds to the agency's worries that inflation, higher interest rates and stricter underwriting standards could suppress both issuance and borrowing.

    A projected slowdown in GDP growth for Argentina is based on the government's new economic policies, with originators responding by .......

    News Round-up 4 May 2016

  • Kane platform rebranded

    Artex Risk Solutions has rebranded the insurance management operations it recently purchased from Kane under the new name of Artex SAC. The acquisition of the platform was made in late 1Q16 as part of Artex's drive to increase its ILS capabilities in Cayman and Bermuda (SCI 22 March). The platform was built as the vehicle for Kane's private ILS and catastrophe .......

    Job Swaps 4 May 2016

  • Card ABS near record levels

    US credit card ABS performance is still hovering close to record territory, according to Fitch's latest quarterly update for the sector. Charge-offs edged up from 2.52% to 2.65% in 1Q16, but still stayed below the 2.75% mark for the third consecutive quarter.

    Credit card delinquencies also began to normalise, with late pays rising slightly to 1.05% in 1Q16. However, this .......

    News Round-up 3 May 2016

  • Funding builds case for ABS

    LendInvest has secured a £40m warehouse financing facility from Macquarie Bank. An ABS issuance is understood to be in the works.

    This is the fourth bank funding line the real-estate marketplace lender has secured. LendInvest has now received a total of £230m in investments from UK and international institutions.

    "We look forward to working with the Macquarie team as we .......

    News Round-up 29 April 2016

  • Start-up adds ABS pro

    Financial technology start-up ZestFinance has appointed Steven Fernald as head of capital markets. He reports to ceo Douglas Merrill and will oversee new and existing capital markets relationships.

    Fernald was previously part of the student loan ABS group at Morgan Stanley. He has also worked at UBS.

    .......

    Job Swaps 28 April 2016

  • IMF warns China over NPLs

    The IMF has praised Chinese attempts to tackle its debt problem through new schemes that introduce NPLs to the market, but warns that a lack of careful design could prompt the rise of 'zombie' firms. The organisation therefore lays out a number of recommendations, including the need for a diversified pool of NPLs within any proposed securitisations.

    The response comes after recent moves .......

    News Round-up 27 April 2016

  • Accounting factor

    Fair value, MOA lead retention options

    Many US securitisation market participants are becoming bogged down in the numerous accounting considerations associated with the Dodd-Frank risk retention requirements. With less than eight months until the rules come into force, sponsors are weighing up the best options for consolidating the retained interest.

    RMBS risk retention rules became effective in the US in December 2015, but the remaining asset .......

    News Analysis 27 April 2016

  • Yirendai completes ABS issuance

    Chinese online consumer finance marketplace Yirendai has completed a CNY250m ABS issuance. Yirendai announced last month that it had facilitated a trust to securitise consumer loan products, with the first ABS expected to be listed for trading on the Shenzhen Stock Exchange within four weeks.

    "We are pleased to see the substantial progress of the ABS products issuance," says Ning Tang, .......

    News Round-up 27 April 2016

  • SFI website likely delayed

    ESMA says it has encountered a number of issues in its preparations for developing a website on the disclosure of structured finance instruments (SFI). The absence of a legal basis for its funding is one key barrier, which has left the regulator admitting that the website will not be ready for entities to start reporting by the 1 January 2017 deadline.

    The European Commission .......

    News Round-up 27 April 2016

  • Blade ABS hits rough patch

    Moody's has downgraded Blade Engine Securitization Series 2006-1 due to revised future income expectations. The A1 and A2 notes have both been downgraded from Ba3 to B3, while the B notes have been downgraded from B2 to Caa3.

    The rating agency has reduced its expectations for future income from the engine portfolio for several reasons, not least the fact that .......

    News Round-up 27 April 2016
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