ABS

  • BNP adds to ABS expertise

    BNP Paribas has brought in Alex Nixon as vp in investment banking, focusing on non-flow ABS. He joins the bank from KGS-Alpha Capital Markets. Nixon has also held a number of roles at Ascent Biomedical Venutres and Ernst & Young.

    .......

    Job Swaps 24 December 2015

  • PREPA deal reached

    PREPA has finally reached an agreement with bond insurance subsidiaries of Assured Guaranty over a financial restructuring plan. The agreement will provide a framework for resolving the treatment of holders of insured PREPA revenue bonds, as well as supplying bridge financing for PREPA's interest payment on 1 January 2016.

    Assured Guaranty's proportionate share of the PREPA bridge financing is approximately US$15m. .......

    News Round-up 24 December 2015

  • P2P deal expands asset class

    A second OnDeck Capital securitisation is in the market, but this time the online lender is acting as servicer, not sponsor. That role is being taken by Jefferies Asset Funding, which is sponsoring a rated marketplace lending ABS for the first time.

    The US$143.646m MarketPlace Loan Trust Series 2015-OD4 comprises a US$128.525m A class and a US$15.121m B class. The class A .......

    News Round-up 23 December 2015

  • Recruitment shift

    SF hiring zoning in on peripheral space

    The recruitment outlook in structured finance remains subdued as regulation maintains its stranglehold in Europe and the US. However, peripheral players are keeping the market ticking over by testing the securitisation waters.

    "There has been some activity going on in the traditional structure finance space; for example, on the rating agency side," says one London-based headhunter. "Some agencies have been .......

    News Analysis 23 December 2015

  • Guggenheim adds origination vet

    Guggenheim Securities has appointed Diane Rinnovatore as a senior md in its structured products origination business. She reunites with Cory Wishengrad, head of structured products and former colleague at both Lehman Brothers and Barclays.

    Rinnovatore joins Guggenheim from Star Mountain Capital. She was previously co-head of securitised products origination for the Americas and head of US bank DCM at Barclays, as .......

    Job Swaps 23 December 2015

  • Alarm bells

    Fund liquidations bring echoes of 2007

    With year-end rapidly approaching, high yield credit was thrown into a loop by a quick-fire succession of announcements from Lucidus Capital Partners, Third Avenue Management and Stone Lion Capital Partners. Redemption suspensions and portfolio liquidations at the funds are sparking fears of a 2007 re-run.

    Lucidus announced last week that it had liquidated its entire portfolio, with the intention of .......

    News Analysis 23 December 2015

  • Utility tariff criteria updated

    Fitch has updated the asset-backed sector of its criteria for rating US utility tariff bonds, outlining the unique features of a tariff bond relative to a traditional ABS. Most notably, tariff bonds are compared by the agency for their characteristics as intangible, future-flow regulatory assets. The criteria also references the special protections available to holders of tariff bonds that qualify for achievement of .......

    News Round-up 22 December 2015

  • RMBS, CLO fraud admitted

    A former co-head of US ABS, RMBS and CMBS trading at RBS Securities has waived his right to indictment and pleaded guilty to participating in a multimillion dollar securities fraud scheme. Adam Siegel admitted that he and colleagues conspired to increase RBS's profits on CLO and RMBS trades at the expense of customers.

    Siegel held the role at RBS from .......

    Job Swaps 22 December 2015

  • Student movement

    SLABS market diverging with innovation, uncertainty

    The US student loan ABS sector remains mired in uncertainty surrounding potential downgrades that could be inflicted on a number of FFELP transactions. In contrast, private SLABS sponsors continue to innovate in terms of collateral and new structures.

    One trail blazer in the student loan ABS segment is Social Finance (SoFi), which debuted at end-2013 with its SoFi Professional Loan .......

    News Analysis 22 December 2015

  • EBA makes synthetic STS suggestion

    The EBA supports the limited extension of the prudential treatment granted to simple, transparent and standardised (STS) securitisations to banks that originate and retain certain SME balance sheet synthetic securitisation positions. The authority has published criteria to determine transaction eligibility.

    The EBA has examined the synthetic securitisation market and, based on its findings, supports the extension of STS capital requirements .......

    News Round-up 21 December 2015

  • FFELP watchlist grows

    Fitch has placed a further 238 tranches from 118 trusts of US FFELP student loan ABS on watch for potential downgrade, in addition to maintaining the status for 77 tranches. This leaves approximately US$37.5bn of outstanding FFELP ABS bonds now on rating watch negative.

    Fitch's latest action follows the heightened risk of the tranches missing legal final maturity dates. The agency has been joined by Moody's .......

    News Round-up 21 December 2015

  • Bibby details emerge

    Some additional details have materalised on Bibby Financial's recent securitisation of factoring and invoice receivables, which it issued in October (SCI 30 November). The transaction is the first rated private deal by a non-bank asset-based lender covering multiple legal jurisdictions.

    Advisor to the deal, Norton Rose Fulbright, says that the securitisation involves Bibby's existing £480m loan book of factoring and invoice finance receivables, .......

    News Round-up 18 December 2015

  • VW ABS performance updated

    Recent updates from Volkswagen and its subsidiary Volkswagen Financial Services (VWFS) on the impact of the emissions scandal support a number of assumptions that have been made by Fitch regarding EMEA ABS transactions. Initial performance data and measures taken by VWFS to mitigate counterparty risks also support the credit quality of these transactions.

    The November agreement between VW and the German .......

    News Round-up 18 December 2015

  • Italian regs boost ABS

    The Bank of Italy's regulatory framework enacted in 2015 for financial intermediaries carrying out servicing activities is credit positive for all Italian structured finance deals, says Moody's. Certain types of consumer ABS deals - Cessione del Quinto (CDQ) and Delegazione di Pagamento (DP) - will benefit the most.

    Moody's notes that organisational and risk-control requirements for servicers will become stricter .......

    News Round-up 18 December 2015

  • Mid-market lender launches

    Great Rock Capital Partners has launched a lending platform that will provide asset-based and asset-backed loans to middle market companies lacking financial support from traditional bank lenders. The platform, named simply Great Rock, will be backed by Two Sigma Private Investments.

    Stuart Armstrong has been appointed as Great Rock's ceo and cio. Most recently, he served as president of Great .......

    Job Swaps 18 December 2015

  • Rapporteurs assigned to securitisation files

    The European Committee on Economic and Monetary Affairs is expected to start work on two key securitisation files as soon as the European Parliament reconvenes after the Christmas break, following the recent appointment of rapporteurs and shadow rapporteurs for the documents. The PCS Secretariat reports that for the STS securitisation file, the rapporteurship has been assigned to the S&D group .......

    News Round-up 18 December 2015

  • Black whole

    Whole business securitisation treatment unclear

    The path to eligibility remains unclear for whole business bonds when it comes to the securitisation criteria under Solvency 2. This has stalled new issuance and prompted pricing instability.

    "The regulators' sentiment on securitisation has somewhat reversed course and it is clear that certain types of securitisation are now seen more favourably," says Conor Downey, partner at Paul Hastings. "However, .......

    News Analysis 18 December 2015

  • Euro secondary stalls

    Activity in the European securitisation secondary market has stalled.

    Year-end illiquidity was fully in evidence yesterday with an extremely slow day across the board and secondary spreads closed unchanged. Italian and Dutch paper did garner some interest, but saw negligible trading.

    There is currently one BWIC on today's European schedule - a single €1.9m line of QUADF 2011-1 A1 due .......

    SCIWire 18 December 2015

  • Bloomberg to buy BRAIS

    Bloomberg has agreed to acquire the Barclays Risk Analytics and Index Solutions (BRAIS) business from the bank for approximately £520m. This includes Barclays' indices on securitised products, covering US MBS and CMBS, pan-European floating and fixed rate ABS, and US and European covered bonds.

    The transaction includes the sale of intellectual property in relation to the POINT portfolio analytics tool. Barclays .......

    Job Swaps 17 December 2015

  • Counterparty rating actions inked

    S&P has taken various credit rating actions on 74 tranches in 33 European RMBS and ABS transactions. The move follows the downgrade of Barclays and Deutsche Bank, which are counterparties in the affected transactions (SCI passim).

    Specifically, S&P has: lowered and removed from credit watch negative its ratings on 65 tranches in 26 RMBS and two tranches in two ABS; .......

    News Round-up 17 December 2015

  • Euro secondary chugs along

    Despite wider credit market volatility the European securitisation secondary market is still maintaining its course.

    "We've kept going - there have been a few BWICs, but none of the volatility of broader markets," says one trader. "Flows have been light, but we're still chugging along."

    Overall, the trader adds: "Tone remains constructive and technicals are helping the market. We've got .......

    SCIWire 17 December 2015
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