ABS

  • Euro secondary varies

    Volumes continue to be light in the European securitisation secondary market with performance still varying sector by sector.

    CMBS continues to be one of the strongest sectors. Prices remain well-supported and yesterday's €45m BWIC traded well.

    Prime assets are still seeing two-way flows albeit at much lower volumes than previous weeks. Buying interest in short-dated paper remains the dominant theme, though .......

    SCIWire 5 February 2016

  • RV risk reconsidered

    When mitigating features are in place, some auto lease ABS with low residual value (RV) risk exposure only have moderately higher credit risks than traditional auto loan ABS, says Moody's. Auto lease ABS with low RV risk exposure could qualify as simple, transparent and standard (STS) securitisations, based on the STS criteria from European policymakers.

    The agency says that in .......

    News Round-up 4 February 2016

  • Gracechurch link to base rate 'positive'

    From the start of this month, Barclays is linking the interest rates it charges UK credit card customers to the Bank of England's base rate. The current low interest rate environment means such a move will support excess spread levels in the Gracechurch credit card ABS trust and reduce potential asset-liability interest rate mismatches between the receivables and note liabilities.

    "If .......

    News Round-up 4 February 2016

  • Fitch adjusts tobacco ratings

    Fitch has finally concluded its review of all non-New York tobacco settlement ABS, affirming 60 bonds and downgrading a further 56. The downgrades are a result of the agency's revised tobacco settlement ABS criteria, which it issued in an RFC last year (SCI 23 June 2015).

    An additional 15 transactions, comprising 83 bonds, securitise MSA payments received by the State of New York. .......

    News Round-up 4 February 2016

  • STS expected losses highlighted

    Preferential capital treatment for simple, transparent and standardised (STS) securitisations would be consistent with the superior performance of STS-compliant tranches, says Fitch. However, the proposed capital charges are still significantly higher than expected losses.

    Fitch expects losses of 1% for STS-compliant deals and 4.3% for non-STS deals. "This suggests that lower capital charges for STS tranches than for non-STS tranches .......

    News Round-up 4 February 2016

  • Euro secondary difficult

    Wider market weakness continues to make life difficult in the European securitisation secondary market.

    "Yesterday conditions were once again difficult thanks to the global meltdown," says one trader. "As a result, flows and liquidity in our space were very thin."

    However, the trader adds: "We are still seeing some pockets of activity - particularly in short-term bonds across a range .......

    SCIWire 4 February 2016

  • Creval offloads NPLs

    Creval Group has agreed to sell a €314m securitisation of secured and unsecured NPLs to Credito Dondiario. The sale of the Cerere portfolio is the first significant shifting of NPLs off Creval's books as part of its medium-term NPL management plan.

    The portfolio's loans are broken down into 44% secured and 56% unsecured assets and are equal to approximately 11% .......

    News Round-up 3 February 2016

  • Regulatory partner named

    Azad Ali has joined Fieldfisher's financial services regulatory practice as a partner. He was previously counsel in the financial institutions advisory & financial regulatory group at Shearman & Sterling, having been at the firm since 2005.

    Ali specialises in advising clients on UK and EU regulatory matters across a wide range of regulated sectors. He has significant experience in bank .......

    Job Swaps 3 February 2016

  • Business development leader added

    ZAIS Group has appointed Gregory Barrett as head of client relations and business development. He reports to ceo Michael Szymanski and is based in Red Bank, New Jersey.

    Barrett will work with the firm's client relations team, portfolio managers and cio to lead and create distribution strategies for ZAIS. He will also be responsible for client service for investors.

    Barrett .......

    Job Swaps 3 February 2016

  • Euro ABS/MBS stifled

    The European ABS/MBS secondary market continues to be stifled by wider market weakness.

    Activity was once again limited both on- and off-BWIC yesterday as macro volatility kept many investors on the sidelines. The low beta ABS/MBS sectors continue to do well, however.

    Autos and Dutch RMBS in particular are garnering some buying interest and spreads there continue to outperform; while .......

    SCIWire 3 February 2016

  • Italian valuation gap highlighted

    A decree formalising the Italian treasury's €200bn NPL plan (SCI 28 January) is expected shortly. Moody's suggests in its latest Credit Outlook publication that the proposed state guarantee will improve the rating and liquidity of the senior tranches, facilitating both the placement of the senior tranches with investors and the deconsolidation of bad loans from the books of Italian banks. .......

    News Round-up 2 February 2016

  • Capital markets group beefs up

    Cadwalader, Wickersham & Taft has added to its capital markets group in New York with the addition of Chris Gavin as partner. His practice focuses on US and international structured finance transactions covering consumer and corporate debt, including residential mortgage loans.

    Gavin is expected to help develop the firm's global ABS bench, as well as serving clients on the non-agency RMBS .......

    Job Swaps 2 February 2016

  • Credit card comparison tool launched

    Fitch has launched Credit Card Compare, an Excel tool providing access to its surveillance and index data on North American credit card ABS transactions. Users can review the performance of US and Canadian credit card ABS transactions in comparison with Fitch's benchmark indices and macroeconomic indicators.

    The tool allows the comparison of transactions using performance measures such as delinquencies, charge-offs, .......

    News Round-up 2 February 2016

  • Brazil ABS reporting falls short

    Recent changes by Brazil's securities market regulator Comissao de Valores Mobiliarios to ABS performance reporting standards still lack a number of important features, Fitch warns. The breakdown of payment data could result in users continuing to underestimating delinquencies and losses.

    The changes are designed to improve standards that were initially implemented in 2011 with CVM Instruction 489. The amendments have added minor details .......

    News Round-up 2 February 2016

  • True lender status tested

    A recent US District Court for the Eastern District of Pennsylvania decision has highlighted once again the regulatory risks that the 'true lender' doctrine can create for internet-based lenders that partner with banks to establish exemptions from state consumer protection laws (SCI passim). In the Commonwealth of Pennsylvania vs. Think Finance Inc case, the court declined to accept federal pre-emption .......

    News Round-up 2 February 2016

  • Euro secondary still slow

    It continues to be a slow start to the month for the European securitisation secondary market.

    "It was very quiet again yesterday," says one trader. "There was one Italian CMBS BWIC that traded well, but that aside very little happened in our market."

    The trader continues: "Today has started similarly quietly. It looks likely to be more of the recent .......

    SCIWire 2 February 2016

  • AIMA calls for non-bank support

    AIMA has called on the European Commission to support non-bank financing and deeper capital markets as part of its regulatory review. The organisation says any rules should allow greater asset manager participation in securitisations, which would subsequently support the supply of finance to SMEs.

    The comments are in response to the Commission's call for evidence surrounding the EU regulatory framework for .......

    News Round-up 1 February 2016

  • Distressed credit vet tapped

    Black Diamond Capital Management has appointed Todd Arden as senior md and co-chief credit officer. He will have responsibility for co-managing Black Diamond's underwriting processes and credit exposures, as well as sourcing stressed and distressed investment opportunities for the firm's funds.

    Arden will be based in Black Diamond's Greenwich, Connecticut office, and brings over 20 years of experience in the .......

    Job Swaps 1 February 2016

  • ILS manager promotes two

    Elementum Advisors has promoted Paul Barker and Chris Cebula as portfolio managers. Barker has also been made principal by the ILS firm, having previously held roles as a catastrophe modelling analyst and portfolio management associate, where he focused on portfolio construction, hedging and analysis of collateralised reinsurance investments.

    Meanwhile, Cebula also moves up from being a portfolio management associate. He was previously .......

    Job Swaps 1 February 2016

  • Euro secondary quiet

    Month-end made for a relatively quiet session on Friday for the European securitisation secondary market and today is starting out in similar fashion.

    Despite limited activity secondary market tone remains broadly positive in line with improving wider credit. Prime assets are once again leading the way and spreads in the sector continue to edge in.

    At the same time Italian .......

    SCIWire 1 February 2016

  • Refinance SLABS debuts

    Online lender Earnest Operations is in the market with its inaugural rated term securitisation. The US$212m transaction, dubbed Earnest Student Loan Program 2016-A, is backed by refinanced student loans.

    DBRS has assigned provisional ratings to the ABS, which comprises US$34.71m single-A rated class A1 notes, US$70.24m single-A class A2s and US$7.05m triple-B class Bs. The trust will also issue a .......

    News Round-up 29 January 2016
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