ABS

  • Kane sells ILS business

    Artex Risk Solutions is set to acquire Kane's insurance management operations (KIM), with the deal expected to close by the end of the month. Artex says that the acquisition will strengthen its ILS capability in Cayman and Bermuda.

    KIM specialises in insurance and alternative risk solutions with expertise in the healthcare, insurance, financial services, transportation and construction industries. It specifically provides .......

    Job Swaps 22 March 2016

  • Further delay for Madden case?

    The US Supreme Court has asked for the views of the US solicitor general before deciding whether to hear an appeal from the Second Circuit Court of Appeals regarding the Madden vs Midland case. The move is likely to further delay a final decision in the Madden appeal.

    The solicitor general represents the federal government before the Supreme Court, which .......

    News Round-up 22 March 2016

  • Land of the few

    Marketplace ABS 'a long way away' for Europe

    Marketplace lending ABS is providing a new source of yield for investors - although, as a new and largely untested asset class, concerns remain. Activity in a number of jurisdictions is starting to grow, but securitisation is expected to remain largely confined to the US for the foreseeable future.

    "The US has the most developed marketplace lending market. China is .......

    News Analysis 22 March 2016

  • Data heavyweights merge

    IHS and Markit have agreed to a US$13bn merger, combining their information, analytics and solutions services into a single company. The completion of the merger will see the company renamed IHS Markit, which will be headquartered in London but have certain key operations in Englewood, Colorado.

    Details of the deal reveal that IHS shareholders will own approximately 57% of the .......

    Job Swaps 21 March 2016

  • Auto deals driving ABCP

    A recent surge in outstanding ABCP has been driven by increased auto issuance, according to S&P. However, the agency questions the durability of the sector's rally, suggesting that its growth has been overreliant on auto-related deals.

    The ABCP market has risen by 23% in issuance since September 2015, over three-fourths of which has come from auto securitisations. If growth continues on this recent trajectory, outstanding .......

    News Round-up 21 March 2016

  • Annual contracts pose risk to ABS

    The inclusion of annual pay contracts in equipment ABS increases the risk on the deals' short term notes, says Moody's. Structures that includes money market tranches often have a significant portion of such contracts, with agricultural-linked deals particularly exposed to them.

    Moody's believes the seasonality of these contracts could create volatility for equipment ABS. A concentration of the contracts in the few .......

    News Round-up 18 March 2016

  • Low APAC auto delinquencies predicted

    A combination of low interest rates and positive credit factors will keep APAC auto loan ABS delinquencies low in 2016, according to Moody's. Countries with high delinquencies, such as India, could also benefit from a significant drop.

    Moody's explains that the asset class will benefit from supportive economic backdrops in certain markets, low rates, strong loan and borrower characteristics, and diversified collateral pools .......

    News Round-up 18 March 2016

  • Euro secondary upswing

    The European securitisation secondary market is seeing an upswing in activity once again.

    Yesterday saw an uptick in activity after a quieter Wednesday, although focus remains very patchy. Peripherals fared well as did UK non-conforming, which began to reverse recent widening amid strong execution across the session's MBS BWICs. However, it was CLOs that once again led the way with .......

    SCIWire 18 March 2016

  • Marketplace lending carries unique risks

    Marketplace lending carries risks unique to the asset class, says Moody's. The rating agency makes the observation as interest in the sector continues to grow, and reinforces its previous analysis about the asset class.

    Moody's notes that marketplace lending platforms may underwrite the loans but do not have skin in the game as they do not bear actual borrower credit .......

    News Round-up 17 March 2016

  • UK ILS commitment reiterated

    In its 2016 Budget announcement yesterday, the UK Government reinforced its commitment to establishing a fully functioning ILS market within the country. The government says it is consulting on proposals for a new, competitive framework for the asset class, which would entail the supervision, corporate structure and taxation of ILS vehicles.

    The proposals for an ILS framework are presented in the .......

    News Round-up 17 March 2016

  • Euro secondary partly pauses

    The bulk of the European securitisation secondary market took a pause yesterday, but CLOs continue to outperform.

    "Yesterday was a bit quieter after the pick-up in activity that followed the ECB last week and into the start of this," says one trader. "BWICs have been the main focus but supply dropped as many people used the excuse of the FOMC .......

    SCIWire 17 March 2016

  • YSOC first for Chinese ABS

    Mercedes-Benz is bringing the first auto ABS deal to China to include a yield supplement overcollateralisation (YSOC) feature. The CNY2.5bn Silver Arrow China 2016-1 deal is also the car manufacturer's debut transaction in the Chinese market.

    The CNY2.37bn class A notes have been rated Aa3 by Moody's, while the CNY125m subordinated notes are unrated. All the notes in the deal have a legal maturity .......

    News Round-up 16 March 2016

  • Negative FFELP watches continue

    Fitch has maintained rating watch negative on 106 FFELP trusts as a result of concerns that tranches could miss legal final maturity dates. The scale of possible rating actions will depend on the remaining time to maturity, recent payments trends, issuer actions and external factors, with triple-A ratings possibly being lowered to non-investment grade.

    The rating agency has identified trusts .......

    News Round-up 16 March 2016

  • Quant leader appointed

    Marketplace lending analytics provider PeerIQ has hired Wilfred Daye as md, quantitative strategies. He will head the firm's quant team and be based in New York.

    Daye spent the last six years at UBS, covering numerous securitised asset classes, including marketplace lending ABS. He brings diverse experience on the buy-side and the sell-side, having also spent time at Deutsche Bank, DB .......

    Job Swaps 16 March 2016

  • Euro secondary mixed

    The European securitisation secondary market is seeing mixed activity and results as the wider credit rally runs out of steam.

    "Overall, the secondary market continues to normalise, but it is highly sector-dependant," says one trader. "Yesterday was active, but that was mainly off the back of BWICs, while customer flows were slower thanks to softening in wider credit."

    Those BWICs yielded mixed .......

    SCIWire 16 March 2016

  • Solar ABS breaking out

    US solar securitisation is set to become a mainstream financing option in the ABS market in 2016 and will achieve new issuance records, according to a new white paper by Marathon Capital. This year has already seen a total of US$235m in deals, exceeding the US$234m that hit the market in the entirety of 2015.

    Last year saw a first for .......

    News Round-up 15 March 2016

  • ECB suggests regulatory tweaks

    The ECB has suggested changes to the new securitisation package proposed by the European Commission and adopted by the European Council in December. The package contains the new overarching European securitisation regulation - including STS - as well as the CRR amendment that sets banks' risk weights to securitisation exposures.

    On the topic of supervision, Rabobank credit analysts note it .......

    News Round-up 15 March 2016

  • Final curtain?

    FRTB to constrict liquidity, trading

    The Basel Committee's finalised fundamental review of the trading book (FRTB) marks another milestone in regulators' long and conflicted relationship with securitisation. While the final draft is less punitive than early versions suggested it might be (SCI 15 January), it is still set to limit market liquidity and trading activity.

    "The final version of the FRTB has provided extra clarity .......

    News Analysis 15 March 2016

  • Indian distressed opportunities targeted

    The Canada Pension Plan Investment Board (CPPIB) and Kotak Mahindra Group have signed an agreement to invest in stressed assets in India. The agreement allows for a total investment of up to US$525m, with CPPIB able to invest up to US$450m.

    The flexible investment mandate seeks to take advantage of the growing opportunity arising from the current stress in the Indian banking .......

    News Round-up 15 March 2016

  • ABS bound

    European marketplace lending to see securitisation stimulus

    KPMG and Cambridge University's alternative finance centre both agree that securitisation will play a vital role in the continuing growth of marketplace lending. The bodies recently partnered on a report that highlights the growth seen to date in marketplace lending in the UK and Europe.

    Sarah Walker, UK lead of alternative finance at KPMG, believes that securitisation will feature in .......

    News Analysis 15 March 2016

  • Italian SPV rules amended

    The Bank of Italy has updated its supervisory instructions for banks and financial intermediaries concerning loans granted by securitisation vehicles. There are now six key requirements.

    First, borrowers must be selected by a bank or financial intermediary registered under article 106 of the Italian Banking Act. The securities issued are reserved for qualified investors only, and the bank or intermediary must .......

    News Round-up 14 March 2016
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