ABS

  • Report calls for higher mezz charges

    A new report from the BIS states that a simple and transparent asset pool does not translate into mezzanine tranches that are simple to assess. The report sets out the view of policymakers that mezzanine securitisation tranches therefore require substantial safeguards, which should be proportionately much larger than those for the underlying assets.

    The Basel Committee is expected to disclose .......

    News 8 December 2014

  • Basel implementation assessed

    The Basel Committee has published a report assessing, under its regulatory consistency assessment programme (RCAP), the implementation of the Basel capital framework in the US and Europe. A key component of this programme is to assess the consistency and completeness of a jurisdiction's adopted standards and the significance of any deviations in the regulatory framework.

    For the US, the assessment .......

    News Round-up 8 December 2014

  • Euro ABS/MBS BWICs quiet pre ABSPP number

    There's little to distract the European ABS/MBS market as it awaits this afternoon's ABSPP volume update with only two BWICs currently circulating.

    There is a £6m line of GRAN 2004-1 3A due at 12:00 London and at 15:00 a three line mixed list consisting of: €32.3m of AYTPI I A, €5m of MESDG DELT A and £11m of RMAC 2003-NS4X .......

    SCIWire 8 December 2014

  • Renewables financing firm launched

    A team of renewable energy and finance industry executives has launched Generate Capital. The firm will focus on funding small-scale, resource-efficient infrastructure, offering multiple types of financial services products, including short-term asset-based financing, equipment leasing and project finance.

    Generate's co-founders include president Jigar Shah, ceo Scott Jacobs and cio Matan Friedman. The firm has appointed Jason Fish as chairman.

    Typical .......

    Job Swaps 5 December 2014

  • European ABS/MBS hold steady

    Spreads are still holding steady in European ABS/MBS this morning, albeit on continued low volume levels.

    "It's another quiet day today and we've only got a few BWICs due," says one trader. Of those he highlights a four line €58m Spanish seniors list due at 14:30, which consists of: TDA 16 A1, TDA 19 A, TDAC 7 A3 and TDAI .......

    SCIWire 5 December 2014

  • SCI conference line-up unveiled

    Final panellist line-ups have been announced for SCI's 8th Annual Securitisation Pricing, Investment and Risk Seminar, which is taking place on 12 December in London. The event is being held at Reed Smith's offices at Broadgate Tower, 20 Primrose Street, EC2A 2RS.

    This conference will focus on relative value in light of ongoing regulatory challenges and the ECB's ABSPP. The .......

    News Round-up 5 December 2014

  • RFC issued on RV approach

    Moody's is seeking comments from market participants on its proposed rating approach for assessing residual value (RV) risk in auto lease transactions in EMEA and on its proposal to adopt the EMEA approach also for rating transactions in the Asia Pacific region. The proposed approach includes three key changes: introducing a Aaa haircut for RV transactions that incorporates the benefit .......

    News Round-up 4 December 2014

  • ILS pro joins AQR

    Greg Habay has joined AQR as a vp in the firm's business development group. He moves from JLT Re, where he was svp and a senior broker. Habay, who will be based in AQR's Greenwich, Connecticut headquarters, will focus on raising capital for existing and future reinsurance funds.

    .......

    Job Swaps 4 December 2014

  • Euro ABS/MBS slow further

    Activity in European ABS/MBS secondary markets has continued to slow throughout this week.

    "We did see some decent customer flows at the start of the week, but it's got quieter since - yesterday was very, very quiet," says one trader. "Today isn't much better, but there are some BWICs here and there."

    ABSPP-eligible ABS/MBS are for now at least holding .......

    SCIWire 4 December 2014

  • Stable investment

    Low-risk option attracting investors

    The overlap between stable value (SV) funds and securitisation is increasing, given that high grade ABS offers the benefits of low risk and steady, predictable returns. However, SV strategies remain somewhat constrained by the conservative nature of their financial objectives.

    SV funds are capital preservation investment options available in 401(k) and other types of savings plans. Douglas Trevallion, md at .......

    News Analysis 4 December 2014

  • China auto ABS performance reviewed

    Moody's has released its first-ever performance review of the burgeoning Chinese auto loan ABS market, published in its latest Structured Thinking: Asia Pacific newsletter. The report finds that delinquency and default rates were low in 2014, alongside record issuance.

    The agency says that China's auto loan ABS market has scaled new heights in 2014, with record levels of issuance achieved. .......

    News Round-up 3 December 2014

  • FLS extended further

    The Bank of England and HM Treasury have extended the Funding for Lending Scheme (FLS) by one year. The extension is designed to provide lenders with continued certainty over the availability of cheap funding to support lending to SMEs during 2015, even in the event of stress in bank funding markets.

    The FLS extension complements other longer-term initiatives to improve .......

    News Round-up 3 December 2014

  • Updated registration to 'simplify issuance'

    The China Banking Regulatory Commission (CBRC) last month unveiled a new registration system for credit asset securitisation. Moody's notes in its latest Structured Thinking: Asia Pacific publication that the move is positive for the development of China's securitisation market because it will simplify issuance.

    Under the new registration system, qualified issuers are only required to register transactions before they are .......

    News Round-up 3 December 2014

  • Flooding the market

    New challenges driving cat bonds forward

    Disappointing financial markets and the search for yield mean that catastrophe bonds are an increasingly appealing source of investment. As new perils and jurisdictions continue to be tapped, the ILS market is expected to remain on the upswing as it rolls into 2015.

    Catastrophe bonds are expected to keep hitting the market up until year-end. Issuance volumes continue to rise, .......

    News Analysis 3 December 2014

  • SF team boosted

    Clifford Chance has recruited a team of five lawyers from Bingham McCutchen, led by partners Robert Gross and William Cejudo, to its office in Washington, DC. The move brings additional expertise to the firm's US structured finance and real estate finance practices, with Gross contributing to the corporate practice and Cejudo expanding the tax, pensions and employment team.

    Gross advises .......

    Job Swaps 2 December 2014

  • Investment teams realigned

    AXA Investment Managers has reorganised its fixed income and structured finance teams with the creation of a new department. Reporting to John Porter, global head of fixed income and structured finance, the new arrangement will facilitate the integration of structured finance assets into traditional fixed income so that AXA IM can address changing client needs across the credit spectrum.

    The .......

    Job Swaps 2 December 2014

  • Month begins with solid session

    US ABS BWIC volume was around US$120m in the first session of the week, with auto paper well represented. There was also a higher than normal number of utility bonds out for the bid.

    SCI's PriceABS data captured half a dozen unique auto ABS line items from Monday's session. Among them was the AESOP 2011-5A A .......

    Market Reports 2 December 2014

  • Mixed reactions in European ABS/MBS

    European ABS/MBS markets appear sanguine about yesterday's announcement that the first week's ABSPP volume was only €368m. Meanwhile, the news that Deutsche Annington is to buy Gagfah for €3.9bn has given a boost to the CMBS market.

    "The market is still a bit quiet this morning with no real reaction to yesterday's ECB number," says one trader. "People were disappointed .......

    SCIWire 2 December 2014

  • Canadian auto losses examined

    DBRS has undertaken a study of Canadian retail auto loan securitisations through the financial crisis to observe loss timing patterns and transaction performance. The agency's observations confirm that losses are more front-loaded during times of stress.

    Leading up to the liquidity crisis, DBRS notes that losses were still front-loaded but more evenly distributed. Importantly, regardless of the state of the .......

    News Round-up 1 December 2014

  • European ABS/MBS ramps back up

    The European ABS/MBS markets are ramping back up after a relatively quiet end to last week.

    The secondary market saw patchy trading continue through Friday with spreads ending the week broadly softer. Meanwhile, the BWIC schedule slowed with the US being out, but is already building up again.

    Currently the first auction scheduled for today is an 11.9m original face .......

    SCIWire 1 December 2014

  • Different roads for auto ABS

    Prime auto loan delinquencies and annualised net losses (ANLs) declined in October compared to September, according to Fitch. In contrast, subprime auto ANLs increased by 13% month-over-month.

    Prime auto loan ABS ANLs dropped by 13% to 0.4%. This was in line with August's rate and represents a 2.4% improvement over October 2013. 60-plus day delinquencies moved down to 0.36%, 10% .......

    News Round-up 28 November 2014
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