ABS

  • 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

  • Euro secondary holds up

    The European securitisation secondary market is holding up amid weakness in broader credit following the ECB press conference yesterday.

    Secondary spreads saw little ECB impact yesterday - with the changes to the ABSPP already factored in, most sectors closed the day unchanged. Flows were patchy and name specific with prime RMBS and autos once more at the forefront, while peripherals .......

    SCIWire 4 December 2015

  • Fund lists ahead of ABS

    Funding Circle has listed its SME Income Fund on the London Stock Exchange after successfully raising the required target of £150m. The move signals the opening up of Funding Circle's loans to a potential global investor base and precedes the platform's inaugural securitisation (SCI 4 November).

    Sachin Patel, global co-head of capital markets at Funding Circle, expects the platform's securitisation .......

    News 3 December 2015

  • Interbank ABS arriving

    Shanghai Provident Fund Management Centre is set to issue an ABS backed by housing fund loans on China's interbank bond market, according to Shanghai Clearing House. The CNY6.96bn (US$1.09bn) deal is believed to be the first of its kind and will launch on 4 December.

    The bonds will be split into two sales, the first consisting of CNY5.02bn, with the .......

    News Round-up 3 December 2015

  • Recycling risk?

    STS synthetic exclusion scrutinised

    The European Commission's Capital Markets Union proposals for reviving Europe's securitisation market sparked the most debate among players in the capital relief space this year, according to a new SCI research report entitled 'Capital relief trades: the mechanics of recycling risk'. Under the framework for simple, transparent and standardised (STS) securitisation, synthetic balance sheet transactions remain ineligible for .......

    News Analysis 3 December 2015

  • Euro secondary keeps busy

    The upswing in activity in the European securitisation secondary market is continuing.

    Yesterday saw a pick-up in trading across the board both on- and off-BWIC. Notably, prime assets returned to form and a strong buying bias, in Dutch RMBS in particular, saw spreads in both ABS and MBS generally tighten.

    Meanwhile, Portuguese paper continued to outperform in peripherals and ended the day slightly .......

    SCIWire 3 December 2015

  • EMEA ratings transition positive

    EMEA structured finance securities continued to experience a decrease in downgrade activity and an increase in upgrade activity in 1H15, compared to 2013, according to Moody's latest transition study for the region. The 12-month downgrade rate for EMEA structured finance decreased from 16% to 4.8%, while the 12-month upgrade rate rose from 6.9% to 37.8% over the same period.

    The .......

    News Round-up 2 December 2015

  • Hedge fund goes private

    BlueCrest Capital Management is to transition to a private investment partnership and will return to its clients the US$8bn it currently manages for them. Following the transition, BlueCrest will only manage assets on behalf of its partners and employees.

    BlueCrest will continue to trade all current major strategies and retain its offices around the world. Strong growth in employees and .......

    Job Swaps 2 December 2015

  • Securitisation package approval imminent?

    The European Council appears set to approve the CMU securitisation package. The Presidency of the Council, Luxembourg, reported yesterday that a special working group has discussed the proposals in six meetings, after which different compromise proposals were prepared. There seems to have been no further reaction to the latest compromise texts, however.

    Consequently, Rabobank credit analysts suggest that formal approval .......

    News Round-up 2 December 2015

  • Online lender ABS debuts

    Online lender loanDepot has closed a US$150m securitisation of unsecured personal loans. It was structured and sold by Jefferies.

    This inaugural ABS also coincides with loanDepot's expansion of its consumer lending division to a new location in Orange County, California. The company began offering unsecured personal loans in May, making it the first national non-bank lender in the US to .......

    News Round-up 2 December 2015

  • Euro secondary picking up

    Activity in the European securitisation secondary market is starting to pick up.

    "Yesterday was very quiet again with not a lot of flows or BWICs," says one trader. "However, it appears to be picking up today and the BWIC calendar is building for the rest of the week, though involving a lot of off-the-run securities."

    The most active sector yesterday was .......

    SCIWire 2 December 2015

  • ABS to boost SMEs

    The British Business Bank (BBB) is considering securitisation as part of its wider remit to increase funding to UK SMEs. It aims to provide capital to increase the supply of asset finance solutions for small businesses and securitisation may be used as a refinancing tool.

    This strategy is part of the BBB's ENABLE funding programme, which aggregates asset finance portfolios .......

    News 1 December 2015

  • European outlook improves

    European structured finance will benefit next year from an improved macroeconomic landscape, consumer confidence and a more competitive lending environment, which will boost asset performance, says Fitch. The rating agency has changed its asset performance outlook to stable/positive for 2016.

    Asset performance outlooks for several individual markets have improved as GDP growth and lenders' greater appetite to underwrite loans to .......

    News Round-up 1 December 2015

  • Tobacco ABS reviewed on data update

    Fitch has placed 49 tranches of tobacco settlement ABS on rating watch and revised two from rating watch negative to rating watch evolving in connection with an ongoing and comprehensive review of its entire tobacco settlement ABS portfolio. The agency says it is taking these actions because of updated or corrected data, assumption changes, anticipated additional payments and corrections to .......

    News Round-up 1 December 2015

  • Complex debt guidelines finalised

    ESMA has published its final report on guidelines on complex debt instruments and structured deposits in MiFID 2. The guidelines are intended for the assessment of securitised debt and money market instruments incorporating a structure which makes it difficult for the client to understand the risk involved.

    The guidelines also apply to structured deposits incorporating a structure which makes it .......

    News Round-up 1 December 2015

  • Asian delinquency trends to diverge

    Moody's forecasts that delinquency rates for structured assets in Asia (ex-Japan) will diverge in 2016. China and Singapore are generally expected to show rising delinquency trends, while performance in India and Korea should exhibit strength.

    "China's gradual economic slowdown will trigger a slight rise in delinquencies from current low levels across a range of asset classes in the country, while .......

    News Round-up 1 December 2015

  • Euro secondary lull continues

    The lull in activity seen at the end of last week in the European securitisation secondary market carried over to another quiet session yesterday.

    With most secondary market participants pre-occupied with month-end there was little investor activity and only very patchy and light flows from dealers, nor were there any European BWICs. However, market tone remained positive with spreads broadly .......

    SCIWire 1 December 2015

  • Growing trade

    Receivables ABS opportunities emerging

    A number of UK government legislative initiatives are expected to help breathe life into small businesses. This, in turn, could help deepen interest in trade receivables securitisation as a useful tool for facilitating working capital.

    The Small Business, Enterprise and Employment Act is cited by Moody's as one particular initiative that can help boost SME access to private sector finance .......

    News Analysis 30 November 2015

  • VW issuance to expand

    Volkswagen says it plans to continue diversifying its mandate for auto ABS issuance amid the ongoing fuel-emissions scandal. The manufacturer notes that the priority will be to secure liquidity and not maximise basis points.

    Moody's recently commented on Volkswagen-sponsored ABS in light of the heightened risks potentially involved. The agency expects a negative effect, particularly on US deals, as a .......

    News Round-up 30 November 2015

  • APRA proposal 'credit positive'

    APRA's proposed changes to Australia's prudential framework for securitisation are credit positive for Australian banks (SCI 26 November), according to Moody's. The agency expects the proposal to improve access to securitisation funding by broadening the investor base for Australian transactions and enabling the securitisation of new asset classes.

    "Some of the proposals - in particular the reintroduction of date-based calls .......

    News Round-up 30 November 2015

  • ABSPP 'pause' due

    The Eurosystem is set to temporarily pause its purchases under the ABSPP between 22 December and 1 January 2016, in anticipation of lower market liquidity during this period and to reduce potential market distortions. Purchases will resume on 4 January.

    However, the ECB anticipates purchases made during the period of 27 November to 21 December to be "somewhat frontloaded", in .......

    News Round-up 30 November 2015
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