ABS

  • 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

  • Used car price impact gauged

    A rising amount of turned-in and off-lease vehicles will lead to declining values for used cars over the next couple of years, according to Fitch. However, the agency doesn't expect this trend to dent performance of US auto ABS.

    Higher volumes of trade-ins and off-lease used vehicle returns have led to a rising inventory, while increased new car production and .......

    News Round-up 9 February 2015

  • Unexpected issuers

    Non-bank lender ABS activity on the rise

    The fact that OneMain Financial and Prosper - via BlackRock - have got deals away so early in the year suggests that the increased variety of asset classes and issuers that developed in the US last year should continue to thrive in 2015. Indeed, non-bank lender ABS is expected to account for a growing slice of the market.

    "The fact .......

    News Analysis 9 February 2015

  • Euro secondary mixed

    Last week's positive tone across European secondary has followed on into this for most deal; types and jurisdictions, but there are some exceptions.

    Dutch and UK prime, UK non-conforming and Italian RMBS continue to be better bid. At the same time buy-side demand for CLOs is on the rise across the capital stack.

    Conversely, Greek paper continues to be impacted .......

    SCIWire 9 February 2015

  • Floorplan criteria finalised

    S&P has published its rating methodology and assumption criteria for global non-diversified auto dealer floorplan (ADFP) ABS. The agency has added qualitative factors relating to the relevant auto manufacturer to be considered in its analysis.

    These factors include consideration of the stand-alone credit profile (SACP) of the manufacturer, which is S&P's opinion of the manufacturer's creditworthiness in the absence of .......

    News Round-up 6 February 2015

  • Reset ABS affirmed

    Fitch reports that the credit enhancement levels of six Indian auto ABS have been reset with no rating impact since the Reserve Bank of India released guidelines on CE reset in July 2013. The agency expects the volume of CE resets in Indian transactions to rise as the sector matures.

    CE reset refers to the removal of credit enhancement from .......

    News Round-up 6 February 2015

  • Euro ABS/MBS holds firm

    Away from Greece secondary European ABS/MBS spreads are holding firm.

    Core bonds continue to grind tighter and peripheral spreads are holding up well on the back of broad-based demand. Areas of focus remain Dutch prime, UK non-conforming and Italian RMBS.

    The BWIC calendar so far today is again relatively light with a fair number of line items only offered in small .......

    SCIWire 6 February 2015

  • Cat bond innovation expected

    A flurry of activity in 4Q14 resulted in record 144A P&C catastrophe bond issuance that exceeded US$8bn for the year, according to GC Securities' latest ILS update. This followed one of the slowest third quarters to date for issuance.

    Total risk capital outstanding equalled US$22.868bn, the highest level of outstanding risk capital the market has ever supported. GC says that .......

    News Round-up 5 February 2015

  • Call for market 'restart'

    A healthy securitisation market can confer important financial benefits and revitalising this source of financing has emerged as a key area of focus for policymakers, IMF economists observe in the institution's latest Survey Magazine. In its analysis, the IMF offers a comprehensive suite of measures targeting both supply- and demand-side reforms to strengthen securitisation and mitigate risk.

    "Restarting and expanding .......

    News Round-up 5 February 2015

  • Greek RMBS hit again

    Volatility in broader markets has fed through into Greek RMBS this morning, but elsewhere in European ABS/MBS spreads are steady.

    Sellers are outnumbering buyers in Greek RMBS this morning on the back of the ECB implementing further funding restrictions to the country's banks. GRIF 1 A is currently quoted at 65 bid - down over two points today and a .......

    SCIWire 5 February 2015

  • Record ratings settlement agreed

    The US Department of Justice and 19 states and the District of Columbia have entered into a US$1.375bn settlement agreement with S&P along with its parent McGraw Hill Financial. The agreement resolves allegations that S&P had engaged in a scheme to defraud investors in RMBS and CDOs.

    Each of the lawsuits allege that investors incurred substantial losses on RMBS and .......

    Job Swaps 4 February 2015

  • Sales team beefed up

    Bryan Bushnell has joined TwentyFour Asset Management to help develop its sales capabilities with discretionary wealth managers and multi-managers. He arrives from Jupiter, where he was business development manager for wealth management. Kimberley Cuthbertson is also set to join TwentyFour in a sales support role later this month.

    .......

    Job Swaps 4 February 2015

  • Structured finance group poached

    Alston & Bird has expanded its finance practice with the hiring of four new partners and four additional attorneys in Dallas. The group brings with it considerable real estate and structured finance experience.

    The new partners are Mark Harris, Charles Marshall, Peter McKee and Patrick Sargent. Also joining the firm are three counsel - Michael Jewesson, Jonathan Rini and Karen .......

    Job Swaps 4 February 2015

  • BPF undertakings transferred

    The partnership between Banque PSA Finance (BPF) and Santander Consumer Finance (SCF) is expected to have no impact on the ratings of the five French BPF transactions rated by Fitch. France and the UK are the first countries to implement the global cooperation between BPF and SCF, with all the administrative and regulatory tasks and consents finalised yesterday (2 February). .......

    News Round-up 3 February 2015

  • CRA technical advice prepped

    ESMA has released a call for evidence as part of the development of technical advice for the European Commission on the functioning of the credit rating industry and the evolution of the markets for structured finance instruments, as required by the regulation on credit rating agencies (CRAs). The authority is seeking evidence about how the regulation is achieving the objectives .......

    News Round-up 3 February 2015

  • Euro ABS/MBS keeps steady

    The European ABS/MBS secondary markets maintained their steady head of steam through yesterday and into today.

    While spreads continue to hold in across the board, two areas were involved in notable price action - UK non-conforming RMBS, which saw a further increase in activity and traded strongly off- and on-BWIC yesterday, and CMBS deal INFIN SOPR.

    "There was a drop in valuation .......

    SCIWire 3 February 2015

  • Record lows for auto arrears

    Fitch reports that European auto ABS performance continued to improve in 2014 as arrears reached record lows. The agency's 30-plus and 60-plus delinquency indices fell to 0.9% and 0.4% respectively, from 1.4% and 0.6% at the end of 2013, while its annualised loss index decreased slightly to 0.3% from 0.4% in the same period.

    Macroeconomic factors also showed signs of .......

    News Round-up 2 February 2015

  • HQS boost for Europe

    The European Commission last week began a project to create a capital markets union (CMU) for all 28 EU Member States with a first orientation debate at the College of Commissioners. The CMU is one of the Commission's flagship projects and ties in with efforts to boost jobs and growth in the EU.

    "It is designed to help businesses to .......

    News Round-up 2 February 2015

  • Origen ABS acquired

    HAS Capital has acquired interests in select ABS structured financings and manufactured housing-related assets from affiliates of Origen Financial. The assets primarily consist of equity trust certificates issued in conjunction with seven rated securitisation trusts with a current underlying asset value of US$412m.

    HAS says it co-invested in the deal with a credit-oriented investment manager that holds a majority stake .......

    Job Swaps 2 February 2015

  • Positive tone continues in European ABS/MBS

    The European ABS/MBS secondary markets held onto their positive tone into the end of last week and the start of this.

    As expected, European secondary volumes were low on Friday due to a combination of month-end and continued broader market concerns over Greece and oil prices keeping many investors on the sidelines. However, ABS/MBS spreads were either unchanged or slightly .......

    SCIWire 2 February 2015

  • Auto performance to slow?

    The shift away from smaller, more fuel-efficient vehicles could result in lower wholesale vehicle prices and marginally slow the asset performance of US auto ABS in 2015, Fitch suggests. Sales of trucks and SUVs reached the highest level in over three years through end-2014, while sales of cars have been declining since 2012.

    Fitch expects used vehicle supply to rise .......

    News Round-up 30 January 2015
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