ABS

  • ABS surveillance standard introduced

    Bishopsfield Capital has introduced a new standard for the surveillance of ABS investments in response to regulatory requirements. The standard entails a number of proposals that attempt to maintain formal monitoring procedures for ongoing, timely surveillance and stress-testing of securitisation investments, as well helping investors avoid stringent penalties for non-compliance.

    "Although guidelines have been set out, regulators have not been .......

    News Round-up 27 May 2015

  • FCA fines investment bosses

    The UK FCA has published notices setting out its decision to fine and prohibit three former members of Keydata Investment Services' senior management from performing any role in regulated financial services. Stewart Ford, Mark Owen and Peter Johnson have received the notices on the accusation of misleading investors, as well as the UK FSA, regarding the performance of certain investment products. The FCA has decided to .......

    Job Swaps 27 May 2015

  • Aircraft debt methodology released

    Kroll Bond Rating Agency (KBRA) has released its methodology for rating enhanced equipment trust certificates (EETC) and secured aircraft debt. The methodology reviews the key risk factors that KBRA considers in rating full-recourse secured aircraft debt instruments issued by airlines and aircraft lessors.

    Of the two corporate secured aircraft-debt types, EETCs are the most common form of publicly issued secured .......

    News Round-up 27 May 2015

  • Euro secondary stays stable

    European securitisation secondary markets are staying stable despite the broader credit market weakness of the past couple of days.

    "Macro noise is keeping investors on the sidelines and there's quite a bit of new issuance to distract from secondary too," says one trader. "However, the general tone remains unchanged and we're still experiencing the status quo of the past couple .......

    SCIWire 27 May 2015

  • Expanding horizons

    China seeking fresh growth opportunities

    The Chinese securitisation market continues to show promising signs of growth. The authorities are now exploring new ways to strengthen the market by involving foreign investment and reinvigorating secondary activity.

    Issuance in the Chinese securitisation market under the country's Credit Asset Securitisation (CAS) programme jumped to approximately CNY280bn in 2014 from CNY16bn in 2013 (SCI 3 March), according to Moody's. .......

    News Analysis 27 May 2015

  • Chinese ABS benefits anticipated

    Fitch suggests that the growth and development of China's ABS market should allow greater operational flexibility for banks in terms of liquidity and capital management, provided that the securitised assets are sufficiently transferred outside of the banking system. The Chinese government has placed increasing emphasis on asset securitisation as a means to free up idle assets within the banking system, .......

    News Round-up 26 May 2015

  • Euro secondary starts settled

    Last week ended quietly as anticipated for European secondary securitisation markets and, following the long weekend either side of the Atlantic, looks likely to begin this in settled form barring any interference from macro-driven volatility.

    Secondary spreads ended last week broadly unchanged on the day on the back of continued light flows. Meanwhile, the few BWICs there were on Friday .......

    SCIWire 26 May 2015

  • CDQ activity picking up

    The Italian Cessione del Quinto (CDQ) market will remain active in 2015 based on cheap available funding and an improved macroeconomic forecast for Italy, says Moody's. Most CDQ transactions are currently either performing in line with, or exceeding, the agency's expectations and arrears are low in absolute terms.

    "CDQ financing represents about 17% of the Italian consumer lending market," says .......

    News Round-up 22 May 2015

  • Private debt pro moves

    Eiffel Investment Group has hired Mathias Choussy as part of its credit team. He arrives from Federis Gestion d'Actif, where he was responsible for private placements activity, particularly with co-managing investments in private credit instruments issued by European mid-caps.

    Choussy has also held a number of senior roles that encompassed portfolio management and research in the investment grade, high yield and securitisation markets. The firms .......

    Job Swaps 22 May 2015

  • Euro BWICs ease

    The BWIC-led week in European securitisation secondary markets is easing to a close today.

    BWICs dominated ABS/MBS secondary trading once again yesterday and the bonds that traded did so in line with expectations. Flow trading was patchy once more, but broadly spreads remained unchanged though Italian and Portuguese paper continued to weaken.

    At the same time, European CLO secondary activity .......

    SCIWire 22 May 2015

  • SSFA guidance released

    The US Fed has issued guidance indicating when a banking organisation that determines its risk-based capital using the advanced approaches may apply the simplified supervisory approach (SSFA) rather than the supervisory formula approach (SFA) when determining the risk weight of a securitisation exposure. The guidance modifies the previous 2013 guidance and sets forth more general guidelines as to when the .......

    News Round-up 21 May 2015

  • Euro ABS/MBS holds up

    European ABS/MBS secondary spreads are mostly holding up despite a heavy BWIC calendar and a general risk-off attitude.

    "There were a lot of BWICs yesterday and nearly all line items traded well," says one trader. "The calendar is quieter today, but overall volume in BWICs significantly up."

    This contrasts with the rest of the secondary market, the trader adds. "Elsewhere .......

    SCIWire 21 May 2015

  • Dubai SF platform set up

    SG has strengthened its presence in the Middle East by launching a new structured finance platform in Dubai. Charles Emmanuel de Beauregard will assist in spearheading the group as director of structured finance and will be responsible for export, infrastructure and asset-based finance.

    Additionally, Karim El Zein has been appointed vp for debt capital markets. He joins from Credit Suisse, .......

    Job Swaps 20 May 2015

  • Timeshare delinquencies 'stable'

    US timeshare ABS delinquencies were stable in 1Q15 and remain within historically normal levels, according to Fitch's latest index results for the sector. Total delinquencies were 2.9% for the quarter, consistent with 2.89% in 4Q14 but below the 3.19% observed in 1Q14.

    Fitch says there was a slight increase in defaults in 1Q15, due to typical winter performance. Defaults stood .......

    News Round-up 20 May 2015

  • Euro ABS/MBS BWIC spike

    After another relatively quiet day yesterday, the European ABS/MBS secondary market looks set for a busy day today with a spike in BWIC volumes.

    For the most part secondary spreads remained range-bound yesterday on light activity. Although one trader notes: "Market tone is a little bit weaker away from core product - peripherals and mezz 2.0 CMBS have edged out, .......

    SCIWire 20 May 2015

  • ABS survey signals stability

    ABS investors remain comfortable with performance in the market, according to JPMorgan's mid-year ABS investor survey. This will likely be reflected in continued participation in the sectors that the investors currently invest in.

    JPMorgan ABS analysts expect ABS supply to reach US$200bn by year-end 2015, which would supplant the US$190bn of primary issuance in 2014. Survey respondents concurred, with 45% of .......

    News Round-up 19 May 2015

  • Euro ABS/MBS builds up steam

    The European ABS/MBS secondary market looks to be building up a head of steam.

    Yesterday was, as expected, a quiet day with caution prevailing. However, there was patchy trading in the usual sectors plus an increase in interest in specific Spanish names. BWICs traded in line with expectations and overall spreads remained range-bound.

    With broader credit improving, today is likely .......

    SCIWire 19 May 2015

  • Euro ABS/MBS shows caution

    Some signs of caution are entering the European ABS/MBS secondary market, but it may not last.

    The quiet end to last week, which saw ABS/MBS spreads close unchanged has morphed into an even more cautious tone today with some signs of softening as broader credit edged wider on Greek concerns this morning. However, it is hoped that the building BWIC .......

    SCIWire 18 May 2015

  • Finding solutions

    Slowing SLABS payments prompts intervention

    Slower borrower pay-downs have increased the risk of default for a number of FFELP student loan ABS transactions. Bonds with shorter maturity dates are most vulnerable, prompting proposals to rescue these deals by re-accelerating payments.

    The percentage of US borrowers making any payments on their student loans declined to an average of 46% during the period between 2007 and 2014, .......

    News Analysis 18 May 2015

  • Revolving structures evaluated

    Despite revolving structures not yet emerging in the growing Chinese securitisation market, Fitch believes they are both necessary and desirable. This is particularly true for ABS transactions, where the underlying assets have a short tenor.

    The agency says that without the use of revolving structures - which would allow issuers to reinvest repaid receivables into purchasing new receivables - an ABS transaction that securitises short-term .......

    News Round-up 18 May 2015

  • Prudent valuations practices examined

    SCI is hosting a complimentary webinar exploring how IPV and prudent valuations practices are adjusting to new European regulatory requirements. The event is being held at 12pm UK time on 21 May, but will also be available to download from the SCI website afterwards.

    The webinar will attempt to define what constitutes a prudent valuation under the EBA .......

    News Round-up 15 May 2015
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