ABS

  • Euro ABS/MBS unmoved

    The ECB's QE announcement earlier has found favour elsewhere, but the European ABS/MBS market is unmoved.

    "There has been no ABS market reaction to the news, literally nothing," says one trader. QE was to an extent already priced into the market but there could even be an eventual adverse reaction, the trader suggests. "Obviously the fear is now that the .......

    SCIWire 22 January 2015

  • Solar ABS ready to shine

    The US rooftop solar industry has achieved the scale and maturity to tap the securitisation markets as a distinct asset class, says Moody's. The agency believes the declining cost of solar technology, along with regulatory and policy support for solar power has made securitisation viable and attracted institutional investors.

    Solar ABS are backed by pools of rooftop solar photovoltaic systems .......

    News Round-up 22 January 2015

  • Safe harbour clarifications proposed

    The FDIC has proposed a rule that would revise certain provisions of its securitisation safe harbour rule, in order to clarify requirements as to the retention of an economic interest in the credit risk of securitised financial assets upon and following the effective date of the credit risk retention regulations adopted under Section 15G of the Securities Exchange Act. A .......

    News Round-up 22 January 2015

  • Euro ABS/MBS settles down

    The European ABS/MBS secondary market saw a brief hiccup yesterday before settling down to wait on the ECB this afternoon.

    Prices softened yesterday morning before reports appeared speculating that today's announcement would see higher than expected QE buying volumes. Bids immediately strengthened and core paper ended the day unchanged.

    Since then, trading has been has been even quieter, albeit across .......

    SCIWire 22 January 2015

  • Follow by example

    Italy in the NPL spotlight

    Italian NPL disposals have been disappointing so far, despite significant growth of the assets within the country's banking system. Panellists at SCI's annual London conference last month discussed the challenges that face emerging NPL markets, as well as ways to support their evolution.

    Vittorio Savarese, head of credit risk transfer at Banca IMI, describes Italy as a "hot spot" for .......

    News Analysis 21 January 2015

  • Airline sector taking flight

    Kroll Bond Rating Agency reports that the airline sector is enjoying the benefits of lower fuel prices, but is also experiencing stress due to rising concerns about sovereign risk and the strength of the dollar. It adds that the overall credit quality of aircraft lessors will continue to strengthen in the year ahead, supported by improving credit profiles of airlines .......

    News Round-up 21 January 2015

  • Third tariff defecit ABS closed

    StormHarbour has acted as sole placement agent, arranger and lead manager on a €229m sale of electricity receivables owned by EDP Distribuição - Energia to the TAGUS vehicle. The purchase of the receivables was financed through a private placement of pass-through notes in December.

    The deal is the third tariff deficit transaction for which StormHarbour has acted as arranger and .......

    News Round-up 21 January 2015

  • Sukuk set for solid year

    S&P believes that the global sukuk market is primed for another solid year in 2015, even though some emerging headwinds could slow its progress compared to 2014. Sukuk issuance reached US$116.4bn last year, compared with US$111.3bn in 2013, and the agency expects volumes to cross the US$100bn mark again this year.

    Supporting sukuk issuance is the still-positive economic performance of .......

    News Round-up 21 January 2015

  • ABS BWICs bounce back

    US ABS bid-list activity was up yesterday as traders returned to their desks, with student loan and auto ABS paper driving supply. Total BWIC volume was around US$125m, with SCI's PriceABS data capturing 24 unique line items.

    In the student loan space, the COELT 2005-A B tranche was covered at high-82. It had only one previously .......

    Market Reports 21 January 2015

  • Headwinds for LatAm ABS

    Despite potential for growth in some of the smaller Latin American structured finance markets, issuance volumes and collateral performance across the region will face headwinds in 2015, according to S&P. Brazil once again led issuance volume in 2014, followed by Mexico and Argentina.

    Issuance in most of the region's structured finance markets decreased last year, except for Brazil and Colombia. .......

    News Round-up 21 January 2015

  • Positive implications for EMEA ratings

    Moody's has updated a number of its ABS and RMBS rating methodologies, as well as its approach to local currency country risk ceilings. The move is expected to have positive implications for ABS and RMBS ratings in a number of euro area countries, including Spain, Portugal, Italy and Ireland.

    The updated ABS and RMBS methodologies reflect changes to the minimum .......

    News Round-up 21 January 2015

  • BMS president promoted

    BMS Capital Advisory has named Andrew Bustillo, president and ceo of BMS Intermediaries, as a principal of the firm effective immediately. Currently serving as chair of BMS Capital Advisory, in his new leadership role Bustillo will leverage his extensive network among insurance underwriters, risk distributors and capital providers to originate and execute opportunities in the market.

    Together, BMS Capital Advisory .......

    Job Swaps 21 January 2015

  • Europe's waiting game continues

    It's still an ECB waiting game in European secondary markets but sentiment remains positive.

    "It's still mainly about waiting on some ECB action tomorrow," says one trader. "But sentiment is good, albeit on quite thin flows, so we're seeing a continuation of the tightening trend especially in UK and Dutch prime."

    UK non-conforming RMBS is also continuing to attract interest, .......

    SCIWire 21 January 2015

  • Europe stays quiet

    Ahead of the ECB meeting and Greek general election European secondary markets have, as expected, remained for the most part quiet through yesterday and into today.

    Yesterday's BWICs all traded with reasonable participation, but again today the schedule is limited, with only a three line Granite mezz list and a 100,000 piece of Arkle in the ABS/MBS space currently doing .......

    SCIWire 20 January 2015

  • Transparency boost

    Regulatory capital trades expected to flourish

    Increased transparency regarding regulatory treatment appears to have brought stability to the European regulatory capital relief transaction market. Participants report a busy year-end, but expect even more activity in 2015, with action seen from a greater set of bank sellers and jurisdictions.

    Over US$4bn has been invested in regulatory capital trades over the past two years, according to Jack Meeus, .......

    News Analysis 19 January 2015

  • Equipment ABS exceed expectations

    Moody's has lowered its original cumulative net loss expectations for recent vintages of US equipment ABS. The move follows the performance of the related underlying collateral now meeting or exceeding the agency's initial expectations.

    Losses for the 2011-2012 equipment ABS vintages - which Moody's anticipated reaching similarly high levels as those during the recession - outperformed its expectations by 0.5% .......

    News Round-up 19 January 2015

  • CPO relief for ILS

    The US CFTC last month issued two letters - No. 14-145 and No. 14-152 - affecting ILS vehicles. The former letter affords relief to ILS issuers from certain disclosure and periodic reporting requirements, while the latter provides them with no-action relief from commodity pool operator (CPO) registration, subject to specific conditions.

    In addition to meeting the operational and substantive conditions .......

    News Round-up 19 January 2015

  • Europe awaits ECB again

    European secondary spreads ground tighter into the end of last week amid positive sentiment and lighter volumes than of late. This week looks set to continue that direction and pattern of activity, especially given the US holiday today and anticipation of a QE announcement from the ECB on Thursday.

    The European BWIC schedule for today currently stands at two mixed .......

    SCIWire 19 January 2015

  • Euro ABS/MBS stays positive

    The European ABS/MBS secondary markets are staying positive in terms of both tone and price levels as the week draws to a close.

    Strong execution across yesterday's BWICs combined with increased buy-side participation off-BWIC has kept market sentiment positive and spreads have continued to tighten. The greatest beneficiaries continue to be autos, Dutch Prime RMBS and UK non-conforming RMBS.

    CMBS .......

    SCIWire 16 January 2015

  • Pamplona beefs up in credit trading

    Pamplona Capital Management has hired Yacine Amara and Florian Chapel as credit traders. They will trade bonds and derivatives in the Pamplona Credit Opportunities Fund, which invests in European corporate and structured credit.

    Amara and Chapel both arrive from Chenavari Capital Partners. Amara was part of the firm's trading and risk quantitative team, whereas Chapel worked as a senior credit analyst.

    .......

    Job Swaps 15 January 2015

  • Fuel prices to lift aircraft ABS

    Performance of outstanding aircraft securitisations may be buoyed if fuel prices remain at their current levels over the long term, according to Fitch. LTV ratios for existing enhanced equipment trust certificates (EETCs) that feature current-generation narrow-body aircraft could also see marginal improvement.

    Fitch says that lower jet fuel prices may allow the current generation of narrow-body aircraft, such as the .......

    News Round-up 15 January 2015
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