ABS

  • Unconstrained bond fund launched

    T Rowe Price has launched a global unconstrained bond fund, which is designed to help long-term investors navigate fixed income markets. The fund will be managed by Arif Husain, head of international fixed income and co-manager for the firm's international bond fund and institutional international bond strategies.

    The fund seeks to offer some protection against rising rates, with a low .......

    News Round-up 24 February 2015

  • BWICs drive European secondary

    BWICs held sway once more in European secondary markets yesterday as spreads ground ever tighter and today looks set to be similar.

    "We saw seven lists yesterday afternoon and they all traded well," says one trader. "Greece continues to dominate the broader market, but ABS remains insulated from the volatility and the tone continues to be stable and strong on .......

    SCIWire 24 February 2015

  • Euro secondary stays strong

    European secondary securitisation markets continue to trade well despite the Greek rollercoaster impacting other markets.

    A flurry of BWICs added to the calendar on Friday took market attention, but further strong prints were seen across deal types and jurisdictions. There has even been an upswing for some Greek RMBS names - for example, dealer quotes for GRIF 1 A have .......

    SCIWire 23 February 2015

  • Euro secondary closes quietly

    European secondary securitisation markets continue to remain insulated from broader market volatility and after a busy week look set to close it out quietly.

    BWIC activity dominated across the board yesterday with bilateral trading taking a back seat. The majority of ABS, CLOs and MBS on lists saw strong execution once more.

    Today's European auction schedule is considerably quieter with only .......

    SCIWire 20 February 2015

  • CMU consultation underway

    The European Commission has launched its landmark Capital Markets Union (CMU) project, which aims to unlock funding for Europe's businesses and to boost growth in the EU's 28 Member States with the creation of a single market for capital (SCI 2 February). A complementary consultation on high-quality securitisation has also been launched as part of the initiative.

    The first stage .......

    News Round-up 18 February 2015

  • EMEA losses better US rate

    The estimated total losses from European securitisation bonds are small relative to those of the US, according to Fitch. Total losses on Fitch-rated EMEA securitisations issued from 2000 to 2014 are expected to be 0.7%, compared to 4% globally.

    Fitch says that a breakdown of the overall figures provides further evidence that securitisations have not performed as a homogenous investment .......

    News Round-up 18 February 2015

  • Euro secondary remains robust

    European secondary securitisation markets are staying robust despite continuing broader volatility around Greece.

    "The ABS/MBS market is strong," confirms one trader. "The core space continues to grind tighter and it's almost impossible to buy paper - the UK and euro is extremely well bid. At the same time, peripherals are unchanged to slightly better."

    Overall, ABS/MBS flows are increasing, albeit .......

    SCIWire 18 February 2015

  • Great divide

    ABS eligibility gap sparking investor rotation

    The ECB ABSPP-inspired rally has resulted in significant spread tiering between eligible and ineligible European ABS bonds. As investors are increasingly priced out of eligible assets, a trickle-down effect is spurring a dash for euro-denominated and ineligible bonds.

    A number of key moments occurred for European ABS spreads in 2H14, beginning with a 5bp tightening effect after ECB president Mario .......

    News Analysis 18 February 2015

  • Loss trends continue to improve

    Loss trends on pre-crisis global securitisations continue to improve, Fitch reports. The agency says this is due in large part to the recovery of the US housing market.

    Total losses on securitised bonds issued between 2000 and 2008 have dropped to 4.9% from 5% in last year's study. Total losses include both realised and expected future losses.

    "Loss performance on .......

    News Round-up 17 February 2015

  • ILS valuations firm founded

    Former AIG Americas chief risk officer Kevin Huang has founded a firm specialising in risk analysis to facilitate the rapid growth of the insurance-linked securities market. Huang & Associates Analytics (HAA) aims to facilitate the convergence between reinsurance and capital markets through sophisticated analytics, advanced data visualisation, easy-to-use reporting tools and fair market valuation.

    Using a patent-pending mark-to-market approach, HAA .......

    Job Swaps 17 February 2015

  • Euro ABS/MBS keeps calm

    As anticipated with the US holiday the European/ABS secondary market was reasonably calm yesterday and that has extended into this morning despite the news around Greece.

    "We've not seen much action since the Greek discussions collapsed," says one trader. "Overall spreads have remained pretty stable."

    The trader continues: "For the moment the market is quiet, though we're hopeful it'll take .......

    SCIWire 17 February 2015

  • Renewal risk highlighted

    American Express is set to end its US co-brand relationship with Costco Wholesale Corporation on 31 March 2016. AMXCA charge-offs and delinquencies could rise as a result, although the move is expected to have a negligible impact on the ratings of American Express Credit Account Master Trust and American Express Issuance Trust II credit card ABS.

    Costco cards account for .......

    News 16 February 2015

  • Entropics fund operational

    SEF Entropics Cat Bond Fund is now open to subscriptions, becoming the first fund specialised in catastrophe bond investments managed by a Scandinavian asset manager and the ninth cat bond fund globally to comply with UCITS regulations (SCI 10 December 2014). The first institutional investor in the fund is Movestic, part of the Chesnara Group. The fund will invest in .......

    Job Swaps 16 February 2015

  • Peripherals take attention

    Peripheral paper is receiving increased attention in the European ABS/MBS secondary market.

    On the back of strong prints on Friday and positive market tone at today's open, prices in major name peripheral bonds edged upwards first thing this morning. Focus revolved around Greek, Italian and Portuguese paper, though the former is likely to remain highly volatile.

    At the same time, .......

    SCIWire 16 February 2015

  • Euro ABS/MBS returns to form

    After an up and down week in terms of activity the European ABS/MBS secondary markets have returned to form.

    Flows across the secondary market increased yesterday in both bilateral trades and BWICs as lists were added throughout the day. Most names saw strong trading levels and that positive tone has extended into this morning.

    The recent favourite sectors continued to .......

    SCIWire 13 February 2015

  • Euro ABS/MBS dampens down

    Secondary European ABS/MBS activity has dampened down once more as participants step away amid broader market volatility.

    "Flows are again relatively light," says one trader. "There's some concern over Greece and to a lesser extent Ukraine, which is keeping things pretty static in ABS."

    Core bonds remain the main focus of the ABS/MBS market with spreads grinding ever tighter led .......

    SCIWire 12 February 2015

  • Staying afloat

    Rising pressures test servicer resilience

    Recent regulatory and investor pressure on Ocwen has highlighted the operational weaknesses of some US RMBS servicers. Improved risk management - especially regarding communication, information and process flows - is key to strengthening their approach.

    The past few months have seen Ocwen agreeing to a US$150m settlement with the NYDFS and responding to investor allegations of contractual breaches in connection .......

    News Analysis 11 February 2015

  • Euro ABS/MBS picks up

    Despite the lack of BWIC supply activity picked up in European ABS/MBS yesterday and into this morning.

    Dutch and UK RMBS, both prime and non-conforming, Italian RMBS and UK autos are all seeing strong appetite again from both buy- and sell-side players. Consequently spreads in those sectors are edging in or holding tight.

    Elsewhere the story is more mixed with some .......

    SCIWire 11 February 2015

  • To BWIC, or not to BWIC

    A large, diverse block of European bonds came out for the bid last week, but in an untraditional way. The bonds were offered on a BWIC without a deadline, leading some investors to describe it more as a controlled liquidation than a true bid-list.

    "It is a very unusual way to present bonds to the market. Obviously investors are used .......

    News 10 February 2015

  • Light flows in European ABS/MBS

    The light flows seen in European ABS/MBS secondary markets yesterday look set to continue in to today.

    Yesterday saw only patchy activity across deal types with Dutch and UK prime leading the way alongside autos. UK non-conforming saw less action than of late and Greek paper took some hits, but overall spreads stayed steady despite broader market volatility.

    The ABS/MBS BWIC .......

    SCIWire 10 February 2015

  • Aussie outlook 'mixed'

    As Australia continues to shift away from its reliance on the mining sector, S&P suggests that the country's economic outlook remains mixed. Against this backdrop, the agency has identified a number of key risks and developments that may shape the Australian securitisation market in 2015.

    Among the risks is household indebtedness, which remains high in Australia and has been relatively .......

    News Round-up 9 February 2015
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