ABS

  • US, European ABCP outlook 'robust'

    ABCP demand remains robust heading into 2016, says Fitch. A rising interest rate environment is expected to encourage increased use of the short-term product.

    There was US$226bn in US ABCP outstanding through early December, which is slightly below year-end 2014 levels and 81% below the US$1.2trn peak of July 2007. However, conduit sponsors were active and the year-over-year decline is .......

    News Round-up 10 December 2015

  • Japanese credit outlook 'strong'

    The credit quality and performance of Japanese ABS, RMBS and CMBS should remain strong in 2016, says Moody's. A supportive job market will be key in underpinning high credit quality.

    The credit quality of collateral in new consumer-related Japanese ABS - such as auto loan, instalment sales and credit card ABS - will remain strong next year, reflecting supportive labour market conditions, .......

    News Round-up 10 December 2015

  • KfW commits to SMEs

    KfW says it plans to commit a further €1bn in 2016 to the Europe securitisation market, up from its €840m investment this year. Half of the firm's 2016 volume will go towards promoting and diversifying SME financing in Germany and Europe, which will be a substantial increase on the €190m portion spent this year in the SME area.

    KfW's plans .......

    News Round-up 10 December 2015

  • US outlook stable with caveats

    The outlook for US structured finance is stable to positive overall next year, says Fitch. However, the rating agency notes that certain subsectors bear watching for signs of trouble.

    Over 87% of Fitch's rating outlooks remain either stable or positive heading into 2016 as collateral quality remains excellent, with solid performance metrics and robust structural protections. "That said, it is .......

    News Round-up 10 December 2015

  • Euro secondary mixed

    It's turning into a typically quiet December across most of the European securitisation secondary market, but there is some healthy activity in a couple of sectors.

    "The secondary market is still holding up quite well despite broader credit concerns," says one trader. "Flows in general are very quiet, but we are continuing to see strong activity in some sectors via BWICs."

    SCIWire 10 December 2015

  • SFM sale confirmed

    Elian has completed its acquisition of SFM Europe, with Elian's international finance team set to merge with the company. An agreement for the sale of SFM Europe was announced by Elian three months ago as it expressed its intention to enhance its corporate and structured finance offering (SCI 3 September).

    The acquisition pushes Elian's head count up to 640 employees .......

    Job Swaps 9 December 2015

  • ABS, RMBS improvements expected

    Improving credit quality in 2016 will benefit European RMBS and ABS, says Moody's. However, a divide is likely to emerge, as collateral performance in northern European deals outperform their southern counterparts.

    Moody's notes that jurisdictions such as the UK, Germany and the Netherlands will likely be supported by better borrower affordability, low underemployment and house price growth. In Spain, France .......

    News Round-up 9 December 2015

  • Solar loan ABS anticipated

    ABS secured by residential and non-residential solar financing contracts are continuing to emerge as a distinct sector of the US securitisation market, observes Moody's. Although all securitisations to date in the sector have been backed by solar leases or power purchase agreements, the agency expects solar loan securitisations to arrive next year.

    "We expect further growth in ABS secured by .......

    News Round-up 9 December 2015

  • Marketplace lending set for lift-off

    Marketplace lending is primed for further expansion globally in 2016, in terms of both volume and loan type. Moody's anticipates that US marketplace lenders will continue to broaden their product offerings as they build out their platforms, although legal and regulatory issues will remain a significant risk for the industry. Marketplace lenders in France, Germany, Italy and the UK should also .......

    News 9 December 2015

  • Euro ABS/MBS stable

    The European ABS/MBS secondary market remains stable amid wider market volatility.

    "Overall our market is generally OK," says one trader. "ABS/MBS is still well insulated from the weakness in broader markets."

    The trader continues: "We're continuing to see a strong bid for UK non-conforming and buy-to-let. Meanwhile, the rest of the market appears to be well supported and spreads are .......

    SCIWire 9 December 2015

  • Collaboration to boost UK lending

    A series of exclusive agreements signed by RBS with three separate investment partners - AIG Asset Management, Hermes Investment Management and M&G Investments - will boost access to capital for UK businesses backed by private equity. Mid-market firms will be able to borrow up to £100m in a single transaction that can be co-funded by all four lenders.

    Each transaction .......

    Job Swaps 8 December 2015

  • Investment policy revised

    Blue Capital Global Reinsurance Fund is set to revise its investment policy and modify the performance fees payable to the investment manager in advance of the January 2016 reinsurance cycle. Specifically, based on its long-term view of the property catastrophe market, the company's board believes that it is appropriate to reduce the fund's target return and modify the calculation of .......

    Job Swaps 8 December 2015

  • MultiCat losses likely

    S&P has lowered to single-D from triple-C minus its rating on MultiCat Mexico series 2012-I class C notes and removed it credit watch negative. The downgrade is due to Swiss Re's request for an extension of the maturity of the notes, which were scheduled to mature on 4 December.

    The catastrophe bond's maturity will now automatically extend by one month .......

    News Round-up 8 December 2015

  • Further FFELP deals extended

    Navient has extended the maturity dates of six FFELP student loan ABS trusts that it sponsors. In total, US$1.1bn of bonds have had their dates extended to 2083 on both the senior and subordinated tranches, effective from 2 December.

    The six trusts affected by the amendments are Navient Student Loan Trusts 2014-2, 2014-3, 2014-4, 2014-5, 2014-6 and 2014-7. The move follows Navient's .......

    News Round-up 8 December 2015

  • Participation certificate debuts

    Sarana Multigriya Finansial has listed on the Indonesia Stock Exchange (IDX) the country's first ABS in the form of a participation certificate - known as Efek Beragun Aset Berbentuk Surat Partisipasi (EBA-SP) - an instrument introduced by the regulator last year. Dubbed SMF-BTN 01 - Kelas A, the IDR181.6bn transaction securitises housing loans provided by state-owned lender Bank Tabungan Negara.

    News Round-up 8 December 2015

  • Euro secondary slows

    Yesterday saw a fairly slow session across the European securitisation secondary market, but it could yet pick-up again before year-end.

    "Yesterday was quiet, but it's too early to be thinking of year-end just yet," says one trader. "The areas of activity there were still bode well for the remainder of this week and hopefully next."

    The main focus yesterday was .......

    SCIWire 8 December 2015

  • Euro secondary unmoved

    Despite initial post-ECB softening on Friday across broader markets, the European securitisation secondary market remains unmoved.

    Liquidity remains thin across securitisation secondary and that in part helped to ensure spreads closed Friday unchanged. Nevertheless, tone remains positive and pockets of buying activity continue to be seen.

    Where those pockets appear prices are even edging slightly up. Once again, prime assets .......

    SCIWire 7 December 2015

  • ABS criteria aligned

    Fitch has published its global consumer ABS rating criteria by aligning its separate geographical methodologies for analysing credit risk in this asset class. The criteria consolidates the agency's EMEA, APAC and Latin America rating approaches.

    A number of changes were made for the new criteria, including an alignment of the margin compression assumption with the previous EMEA assumption. In addition, .......

    News Round-up 4 December 2015

  • APAC ratings to stay stable

    Ratings and asset performance in Asia-Pacific are expected to be stable throughout 2016, says Fitch. Long-term ratings on structured finance transactions are expected to remain unchanged.

    At the end of 3Q15 there were four positive outlooks and three tranches on rating watch negative. The majority of Fitch-rated Asia-Pacific structured finance portfolios are backed by assets in Australia, where economic fundamentals .......

    News Round-up 4 December 2015

  • Australian master trusts 'possible'

    The Australian Prudential Regulation Authority's revised discussion paper on its prudential securitisation framework (APS120) is now in a form that makes future RMBS and ABS master trust issuance from Australia a distinct possibility, Fitch suggests. The discussion paper - a revision of the proposal issued in 2014 - contemplates allowing early amortisation event triggers, date-based call options and the seller .......

    News Round-up 4 December 2015

  • ABSPP extension inked

    The ECB has extended its purchases under the ABSPP by six months to end-March 2017 and says the programme will run beyond this date if necessary, until there is a "sustained adjustment" in inflation. The bank will also begin reinvesting principal payments on the securities purchased under the ABSPP as they mature, for "as long as necessary", in order to .......

    News Round-up 4 December 2015
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