ABS

  • Euro ABS/MBS activity continues to rise

    Trading activity in the European ABS/MBS secondary market is slowly but surely increasing as the week continues.

    "Today looks to be a bit better again," says one trader. "We're seeing more prices and more enquiries, but the market is slow to come back."

    Yesterday's positive tone has continued into this morning on the back of improved macro sentiment. RMBS remains .......

    SCIWire 8 January 2015

  • Cat bond fluctuations highlighted

    Lane Financial's 4Q14 statistical review of the ILS market highlights the price fluctuations of two catastrophe bonds during the quarter.

    First, the firm notes that price indications for the MultiCat Mexico series 2012-I class C notes were marked down to around 52 in Q4 on speculation that Hurricane Odile had triggered the parameters of the bond by its coastal landing .......

    News Round-up 7 January 2015

  • Corporate trust head hired

    Helena Nathanson has joined Bryan Cave as partner, head of corporate trust in London. She was previously a partner in structured finance at Reed Smith.

    .......

    Job Swaps 7 January 2015

  • ILS partnership realigned

    Third Point Reinsurance has realigned its partnership with Hiscox Insurance Company (Bermuda) in the catastrophe reinsurance fund management business. The firm intends to contribute certain resources of Third Point Reinsurance Investment Management to Hiscox's Kiskadee ILS platform while winding down any remaining exposure in its Third Point Reinsurance Opportunities Fund.

    Specifically, Third Point Re intends to make an investment in .......

    Job Swaps 7 January 2015

  • Fitch bolsters risk management

    Fitch Group has named John Olert group chief risk officer in an effort to pursue a more integrated approach to how it manages various types of risk. His team is responsible for reviewing, monitoring and addressing the risks that could impact the firm's performance and reputation.

    Olert was previously chief credit officer for Fitch Ratings, responsible for credit ratings and .......

    Job Swaps 7 January 2015

  • Euro ABS/MBS picks up positively

    Activity in the European ABS/MBS secondary market is finally beginning to pick up with a slightly positive tone emerging today.

    "It's been relatively quiet since the New Year, but it was a little busier yesterday," says one trader. "We've been somewhat insulated from the broader market volatility over the last few days, but ABS spreads have been softer."

    That looks .......

    SCIWire 7 January 2015

  • Hiring logjam?

    Waiting game leaves recruitment on hold

    Recruitment in the structured finance space remains somewhat stagnant. While market players await regulatory clarity in the US, positive sentiment in Europe is yet to translate into increased hiring activity.

    The European securitisation market has provided a mixture of both disappointment and rational caution in terms of hiring trends, according to one London-based headhunter. "The market may not have picked .......

    News Analysis 24 December 2014

  • Call for clarity

    Transparency at the forefront of CRA debate

    Panellists at SCI's recent London conference discussed the implications of credit rating agency (CRA) regulation in Europe. While they welcomed the increased competition and transparency brought by CRA 3, some issues remain outstanding.

    Andrew Currie, md of structured finance at Fitch, believes that CRA regulation has not been the biggest driver of the way rating agencies are managed. "The financial .......

    Talking Point 23 December 2014

  • SLABS defaults, delinquencies drop

    US private student loan (PSL) defaults dropped below 2.5% for the first time since 2006 and will remain at pre-recession levels, according to Moody's. The default index fell to 2.4% in 3Q14 - continuing a two and a half year decline - while the 90-plus delinquency rate index remained at its historic low of 1.9%.

    "The loans backing 2010-14 securitisations .......

    News Round-up 23 December 2014

  • Ocwen settles NY charges

    Ocwen Financial has reached a settlement with the NYDFS to address its violations of a consent order issued by the regulator in 2012, as well as various violations of its agreement with the regulator in connection with its purchase of Litton Loan Servicing in 2011. There should be no direct impact on non-agency RMBS but certain ABS payments could be accelerated.

    News 23 December 2014

  • Venture debt ABS approach updated

    Moody's has republished its global methodology for rating SME balance sheet securitisations primarily to incorporate its approach to rating venture debt transactions. The agency says that the publication of the formal methodology will not result in any changes to ratings of any outstanding securities backed by venture debt.

    Moody's originally published a request for comment on its approach to rating .......

    News Round-up 22 December 2014

  • DBRS buyout agreed

    The Carlyle Group and Warburg Pincus, in partnership with a consortium of Canadian-based investors - including DBRS founder Walter Schroeder and DBRS management - have agreed to acquire DBRS. Terms of the transaction, which is expected to close in 1Q15, were not disclosed.

    Schroeder will remain an important investor in DBRS. He comments: "While our Canadian franchise and culture will .......

    Job Swaps 22 December 2014

  • RFC issued on life insurance ABS

    Moody's is seeking comments on its proposed approach to monitoring life insurance ABS. The agency says that the approach, if adopted, will not have any impact on the outstanding ratings of life insurance ABS.

    The proposed methodology entails a quantitative and qualitative approach to analyse life insurance ABS transactions with or without the support of supplemental policies, while accounting for .......

    News Round-up 19 December 2014

  • Auto losses up but historically low

    Losses were up for both US prime and subprime auto loan ABS last month. Subprime losses were higher than they have been since early 2010, according to the latest monthly index results from Fitch.

    Subprime auto loan ABS losses moved 4.6% higher to 7.96% in November. Annualised net losses (ANL) for prime auto ABS also moved higher, but are still .......

    News Round-up 19 December 2014

  • Is this it?

    First ABSPP purchases underwhelm market

    Purchase volumes in the first few weeks of the ECB's ABSPP have disappointed market participants. The utility of the purchase programme is also in question unless the mezzanine buyer base can be expanded.

    Last week, ABSPP purchases dropped to €187m, bringing the ECB's total settled ABSPP volume to €788m since the programme started last month. "So far, purchase volumes have .......

    News Analysis 19 December 2014

  • Euro ABS/MBS close to shut down for the year

    The European ABS/MBS secondary market has all but shut down for year-end as from today.

    "This look like it's pretty much it for the year," says one trader. "Spreads haven't moved this morning, but that's theoretical anyway as there has been no visible trading."

    A few very small clips in recently popular names are understood to have changed hands, but .......

    SCIWire 18 December 2014

  • C&E ABS gaining traction

    The growing US economy is set to support good performance in US ABS backed by a range of commercial and esoteric (C&E) asset types, says Moody's. At the same time, recent legal, regulatory and legislative developments could affect transactions in several C&E sub-sectors.

    Economic improvements should particularly support the performance of small-ticket, construction and trucking equipment, along with railcar and .......

    News Round-up 17 December 2014

  • Auto ABS to 'modestly deteriorate'

    Loosening underwriting standards and a greater proportion of borrowers with weaker credit characteristics will cause the quality of US auto ABS pools to modestly deteriorate in 2015, says Moody's. The improving economy and increasing competition among auto lenders has led to the easing of strict underwriting criteria that were adopted in the wake of the financial crisis.

    "Our expectations for .......

    News Round-up 17 December 2014

  • Economy to support private SLABS

    The strengthening US economy is positioning private student loan ABS for a more stable performance next year, according to Fitch. Collateral performance is expected to stabilise further as unemployment drops, while the prospect of rising interest rates should have little more than a negligible effect on ratings.

    "Performance of private student loan deals issued post-crisis is benefiting from more stringent .......

    News Round-up 17 December 2014

  • Stable outlook for APAC

    Fitch expects the ratings and asset sector performance of Asia-Pacific structured finance (SF) transactions to remain stable over the course of 2015. Most public long-term ratings for the sector are likely to remain at their current level throughout next year, largely similar to the situation in 2014. Of the 12 outlooks that were not stable at end-3Q14, six were positive .......

    News Round-up 17 December 2014

  • European secondary struggles on

    Year-end illiquidity in European secondary markets is being exacerbated by volatility in broader markets.

    "The macro-economic environment isn't helping, but it's very slow anyway," says one trader. "Bid-offers are much wider but there's not a lot of trading, which in one way is good as it means we're not seeing any capitulation - there's no client selling."

    There is however, .......

    SCIWire 17 December 2014
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