ABS

  • 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

  • Proof of concept

    Risk transfer regulatory, structuring considerations discussed

    Representatives from Reed Smith and StormHarbour Securities recently provided an introduction to capital relief trades, focusing on regulatory and structuring considerations, during a live webinar hosted by SCI (view the webinar here). This Q&A article highlights the main talking points from the session. For a broader and more in-depth exploration of the risk transfer space, attend SCI's Regulatory .......

    Talking Point 30 November 2015

  • Euro auto delinquencies down

    European auto ABS performance continued to improve in 3Q15 as arrears reached record lows, says Fitch. The rating agency's 30-plus day delinquency index fell from 0.83% in the previous quarter to 0.76% and its 60-plus day delinquency index fell from 0.4% to 0.37%.

    Fitch's annualised loss index decreased from 0.2% in 2Q15 to 0.15% in 3Q15. Macroeconomic factors were positive .......

    News Round-up 27 November 2015

  • HERO hits the market

    Renovate America has issued the first ever 'green' PACE securitisation. HERO Funding Trust 2015-3 represents 8,939 home improvements made to reduce energy or water consumption or produce renewable energy.

    The notes are considered green bonds based on the classification standards of the International Capital Market Association. The transaction is secured by approximately US$207.7m of PACE bonds, issued by WRCOG, SANBAG .......

    News Round-up 27 November 2015

  • Euro secondary slumbers

    The European securitisation secondary market is taking it easy through the US public holiday but market tone is staying strong.

    Despite low volumes yesterday spreads remained firm to slightly tighter across the board. UK non-conforming and buy-to-let bonds are still the most active areas and remain better bid, primarily from the Street. At the same time, peripherals continue to generate .......

    SCIWire 27 November 2015

  • Prudential changes proposed

    The Australian Prudential Regulation Authority (APRA) has released a paper that sets out revisions to the country's prudential framework for securitisation. The regulatory body intends to simplify the rules, in order to strengthen the funding profile for market players and add clarity for entrants looking for capital benefits.

    The proposals take into consideration global reform initiatives and specifically incorporates the Basel .......

    News Round-up 26 November 2015

  • Utility factor

    PREPA deal presents opportunities, risks

    Puerto Rico Electric Power Authority (PREPA) plans to exchange newly issued utility cost recovery charge (UCRC) ABS bonds to its uninsured bondholders as part of an agreement to reduce its debt burden. The deal remains in limbo for now, however, as PREPA continues thrash out details with the bondholders yet to sign up.

    The planned securitisation, which Moody's says would .......

    News Analysis 26 November 2015

  • Aussie ABS, RMBS defaults to inch up

    The delinquency and default rates for Australian ABS and RMBS will rise slightly next year from their current low levels, Moody's projects. This is due to below-trend economic growth and an uptick in unemployment.

    "The credit quality of the mortgage collateral for new RMBS issued in 2016 will deteriorate - when compared with 2015 - owing to the inclusion of .......

    News Round-up 26 November 2015

  • Pass-through tax treatment mooted

    The US Bipartisan Budget Act of 2015 - signed earlier this month - is set to impact the tax treatment of a variety of securitisation structures. The act replaces a longstanding set of statutory provisions governing the audit and adjustment of partnership income tax returns.

    Under existing rules, adjustments to partnership income are generally accounted for and tax paid at .......

    News Round-up 26 November 2015

  • Ratings withdrawn on 'lack of interest'

    S&P has withdrawn its ratings on all notes, except one, issued by Ballantyne Re. The agency says it received a request from the sponsor of the ILS, Scottish Re (US), to withdraw the ratings in 2010 but opted to maintain unsolicited ratings due to potential market interest. However, it notes that there is seemingly no longer significant market interest in .......

    News Round-up 26 November 2015

  • Euro secondary activity fades

    Activity in the European securitisation secondary market is fading away thanks to the US public holiday, but sentiment remains positive.

    "We're quietening down now with Thanksgiving today," says one trader. "Also a lot of people are being distracted away looking at primary and the BMW deal in particular."

    Secondary tone appears to remain strong however. "UK non-conforming and buy-to-let seniors .......

    SCIWire 26 November 2015

  • Consumer ABS programmes minted

    Latitude Financial Services - the renamed GE Consumer Finance business acquired by KKR, Varde Partners and Deutsche Bank - has closed a pair of revolving ABS transactions. Rated by Fitch, the NZ$972.9m New Zealand Sales Finance and Credit Cards Trust and A$3.76bn Australian Sales Finance and Credit Cards Trust programmes are backed by New Zealand and Australian consumer receivables respectively.

    News Round-up 25 November 2015

  • Bank's LatAm exit raises concerns

    Deutsche Bank's decision to close its operations in Argentina and Mexico is credit negative for the Argentine and Mexican securitisations for which it acts as trustee or common representative, says Moody's. Deutsche Bank Argentina acts as trustee in 36 securitisations, while Deutsche Bank México acts as common representative in 1,300 transactions.

    The bank's decision to close its operations in Argentina .......

    News Round-up 25 November 2015

  • Agricultural receivables deal debuts

    BSEC has launched a trade receivables securitisation for Debbané Frères, a provider of agricultural solutions in Lebanon. Dubbed Debbane Agri SIF, the US$13.3m transaction is believed to the first of its kind in the local market and channels financing to support agriculture, an underserved vital economic sector in Lebanon.

    Etienne Debbane, chairman and ceo of Debbané Frères, comments: "Our long .......

    News Round-up 25 November 2015

  • JLT partner relocates

    Nick Duffin has transferred from JLT Re's London office to join JLT Bermuda as a partner. He joined JLT Re in 2012 and through his 14-year reinsurance career has gained experience across multiple asset classes, including ILWs.

    In his new role, Duffin will continue to work with existing clients, as well as expanding the JLT Re role in the Bermuda .......

    Job Swaps 25 November 2015

  • Euro secondary stays strong

    Despite weaker global markets and reduced volumes the European securitisation secondary market is still showing some strong signs.

    "Yesterday was a bit quieter with flows minimal across most sectors as a result of weakness in broader credit thanks to increasing global political tension," says one trader. "However, we saw some strong activity and prints around BWICs."

    The trader continues: "Italian .......

    SCIWire 25 November 2015

  • US job growth supports card ABS

    Strong employment growth should keep US credit card ABS performance metrics near records through the end of the year, says Fitch. Prime charge-offs are expected to increase this month and delinquencies are expected to rise.

    The unemployment rate for October fell to 5%, according to the US Department of Labor, which is a level last reached in April 2008. The .......

    News Round-up 24 November 2015

  • Euro secondary UK focused

    The heightened focus on UK RMBS is continuing in the European securitisation secondary market.

    "Overall, secondary is somewhat quiet," says one trader. "With Thanksgiving coming, today will be another day to get a few things done but away from UK RMBS there's not much broad-based trading."

    The trader continues: "Both UK prime and buy-to let were very busy yesterday. It's .......

    SCIWire 24 November 2015

  • Auto incentive warning

    The proliferation of vehicle incentives could depress the value of used vehicles and contribute to higher loss severity, according to Fitch. The agency warns that this could ultimately push up auto loan and lease ABS loss rates.

    The average incentive per vehicle has risen gradually this year and rose above US$3,000 per vehicle in recent weeks. Incentive levels rose to .......

    News Round-up 23 November 2015

  • Marketplace ABS deals struck

    Victory Park Capital (VPC) has closed a pair of securitisation financings: a A$100m ABS warehouse programme with zipMoney, an Australian digital retail finance provider; and a US$175m marketplace lending transaction, alongside KKR.

    Dubbed zipMoney Trust 2015-1, the Australian transaction comprises three classes of unrated notes issued by Perpetual in its capacity as trustee. Pricing on all classes of notes is .......

    News Round-up 23 November 2015

  • Euro secondary undented

    A typically quiet Friday has failed to dent the positive tone in the European securitisation secondary market.

    After a pick-up in activity earlier in the week, Friday was typically quiet across most sectors. Nevertheless, market sentiment remained strong and spreads closed the day broadly unchanged.

    Continued trading around the Granite redemption means UK prime remains the main focus. Friday again .......

    SCIWire 23 November 2015
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