ABS

  • Capital clarity

    CMU securitisation package receives market approval

    The release of the European Commission's Capital Market Union (CMU) action plan has been hailed for reducing capital requirements and outlining a succinct and centralised definition for simple, transparent and standardised (STS) securitisation. However, key concerns remain over Solvency 2 capital recalibrations.

    The action plan introduces amendments to the Capital Requirements Regulation and a new overall securitisation legislation. The latter .......

    News Analysis 2 October 2015

  • ESMA reports on rating agencies

    ESMA has published two sets of technical advice and a report on the regulation of credit rating agencies in the EU. These papers consider measures to provide stronger controls around credit ratings for structured finance instruments and to reduce reliance on credit ratings.

    The report finds that regulation has improved the governance and operation of rating agencies but that it .......

    News Round-up 2 October 2015

  • Lack of data limits marketplace ratings

    Fitch states that it would struggle to assign a high investment grade rating to securitisations of marketplace lender consumer and SME loans. While recognising that marketplace lenders are not necessarily focusing on riskier borrowers, the agency notes that higher rates being charged to SMEs suggest they have previously been rejected by retail banks, implying a higher degree of risk.

    The .......

    News Round-up 2 October 2015

  • Agency seeks above-currency comments

    S&P is requesting comments on proposed changes to its methodology for assigning ratings above the foreign currency ratings on the sovereigns in a multijurisdictional structured finance transaction. The proposed criteria would constitute a global framework.

    Few rating changes are expected if the proposed criteria are adopted. From a test on CDOs, CMBS, ABS and covered bonds, the rating agency expects .......

    News Round-up 2 October 2015

  • 'Limited' cat bond growth forecast

    Fitch reports that the global catastrophe bond market experienced strong issuance through the first nine months of 2015, despite a modest decline from the record level reported in the prior year. The agency calculates that US$5.5bn of cat bonds were issued during the period, down from US$6.2bn in 2014.

    "Repeat sponsors have replaced maturing issues and taken advantage of current .......

    News Round-up 2 October 2015

  • RFC issued on railcar approach

    S&P is requesting comments on its methodology and assumptions for rating North American railcar ABS. The proposed criteria provide more transparency into the agency's approach and the cashflow assumptions used when reviewing transactions backed primarily by lease rental payments from a portfolio of railcars leased to various lessees.

    The criteria would apply to all new and outstanding North American railcar .......

    News Round-up 2 October 2015

  • New regulations 'unnecessary' for marketplace ABS

    The Structured Finance Industry Group (SFIG) yesterday released its response to the US Treasury's recent Request For Information on the marketplace lending industry. The response covers securitisations of marketplace loans, regulations that are currently in place and what challenges the industry faces in the near future.

    SFIG notes that the marketplace lending industry has the potential to play a major .......

    News Round-up 1 October 2015

  • VW outlook 'negative', agency confirms

    Moody's is the latest rating agency to warn that the US Environmental Protection Agency's findings that Volkswagen used engine management software in its diesel cars to evade emissions standards (SCI 23 September) are credit negative for outstanding auto ABS the company sponsors in the US and Europe. Brand damage could lead to lower recoveries on ABS loan and lease transactions .......

    News Round-up 1 October 2015

  • SCI conference line-up unveiled

    Panellists have been confirmed for SCI's 8th Annual Securitisation Pricing, Trading and Risk Seminar, which is being held on 7 October in New York. The event is being held at Bank of America's offices at 250 Vesey Street (formerly Four World Trade Center).

    The conference programme consists of a series of roundtables and panel debates focusing on issues affecting the .......

    News Round-up 1 October 2015

  • FFELP reform to affect payments

    The CFPB, US Department of Education and Department of the Treasury have issued a joint statement on student loan servicing principles to provide a framework to improve servicing practices, promote borrower success and minimise defaults. The CFPB has also released its student loan servicing analysis of public input and recommendations for reform, which has direct implications for FFELP ABS through .......

    News 1 October 2015

  • New fund targets SF investment

    Franklin Templeton Investments has launched the Franklin K2 Long Short Credit Fund, which will invest in a variety of credit strategies. It aims to provide investors with access to a select group of hedge fund managers in a single diversified portfolio, while providing daily liquidity.

    Franklin Templeton acquired hedge fund solutions provider K2 Advisors in 2012. The new fund aims .......

    News Round-up 1 October 2015

  • Agency proposes new rating type

    S&P has issued a request for comment on its proposed criteria for assigning a new rating type. It would be specific to the financial obligations which structured finance special-purpose entities enter into with banks or other entities on the issuer's credit risk under a contract such as a swap or liquidity facility.

    The new counterparty instrument rating (CIR) would address an .......

    News Round-up 1 October 2015

  • Euro secondary improves

    Tone in the European securitisation secondary market is improving in line with broader market sentiment, but activity remains limited away from VW.

    "Yesterday was very quiet again, but that is typical of quarter-end," says one trader. "However we did start to see bids back in VW ABS and it had stabilised at its wides by the close. This morning it .......

    SCIWire 1 October 2015

  • Derivatives development

    Marketplace lending structured products weighed

    Efforts to create US marketplace loan derivatives are gaining traction, as investors seek hedges for their long positions and increased secondary market liquidity. According to a new SCI research report entitled 'Marketplace lending: disruptors and the new credit paradigm', the development of marketplace lending securitisations and structured products goes hand-in-hand.

    Synthetic Lending Marketplace (SLMX), for one, plans to .......

    News Analysis 1 October 2015

  • CMU proposals laid out

    The European Commission has launched its Capital Markets Union action plan to build a single market among EU member states. The proposal provides specific criteria  to differentiate simple, transparent and standardised (STS) securitisation products, while also making amendments to capital requirements regulations.

    The Commission's introduction of a clear set of criteria to identify STS is broken down into two groups. According to the proposal, 'simple .......

    News Round-up 30 September 2015

  • VW auto ABS risks outlined

    The current Volkswagen scandal may be felt in auto ABS transactions primarily through its impact on used car values, says Fitch. The agency notes that transactions are exposed to used car values either directly through residual value or indirectly via recovery proceeds from the sale of the car when a borrower or lessee defaults.

    Fitch rates 25 Volkswagen-originated transactions globally, with .......

    News Round-up 30 September 2015

  • Euro secondary drifts

    European securitisation secondary spreads are continuing to drift wider.

    "Yesterday was very quiet and today looks to be the same," says one trader. "Clients are definitely sidelined as market sentiment weakens."

    The trader continues: "There are a number of factors impacting sentiment both internal and external to ABS - there's the broader macro picture obviously, combined with our US equivalent .......

    SCIWire 30 September 2015

  • Trevi 3 portfolio acquired

    AnaCap Credit Opportunities III has acquired €1.2bn of non-performing loans from UniCredit Group. Under the terms of the agreement, the AnaCap fund will acquire 100% of the Trevi 3 portfolio, which comprises Italian secured and unsecured bankruptcy and other enforcement claims against primarily SME borrowers.

    AnaCap funds previously acquired a similar portfolio of NPLs from UniCredit in October, totalling claims .......

    News Round-up 29 September 2015

  • RBS reshuffles corporate division

    RBS has appointed Scott Satriano to its new head of financing and risk solutions role as the bank looks to simplify the structure of its corporate and institutional banking (CIB) division. Simultaneously, Kieran Higgins becomes head of trading and flow sales, while Richard Bartlett has stepped down from his position as head of coverage and debt capital markets.  

    Satriano was .......

    Job Swaps 29 September 2015

  • PACE approach finalised

    DBRS has finalised its US PACE securitisation methodology, which it will use to rate and monitor property assessed clean energy transactions. The agency's approach to the asset class entails focusing on the quality of the originator and other parties involved in the transaction, evaluation of the collateral pool and historical collateral performance evaluation techniques. DBRS says it typically evaluates both .......

    News Round-up 29 September 2015

  • Fund liquidity proposals weighed

    Last week, the US SEC voted to propose tighter liquidity rules for open-end funds, including mutual funds and ETFs. While the rules would lead to several changes, the most significant one for CLO investors could be regarding liquidity buckets.

    The SEC's proposed rules would formalise the 15% limit on illiquid assets which currently serves as a guideline, classify assets into .......

    News 29 September 2015
×