ABS

  • 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

  • Law change to affect pub deals

    Plans to give tenants of tied UK pubs the option of simply paying a market-rate rent are likely to hit pubcos' net income in the medium term, says Fitch. Higher letting and beer supply costs, combined with potentially shrinking revenues could damage earnings, with a number of whole business securitisation transactions being affected.

    Following last week's vote in the House .......

    News Round-up 28 November 2014

  • Japanese market outlook 'positive'

    Strong credit quality and good collateral performance will remain features of Japanese securitisation markets in 2015, despite the contraction in the country's GDP, says Moody's. Performance will be underpinned by ongoing strict underwriting standards and supportive labour market conditions.

    Default rates for consumer ABS are expected to be stable at low levels, owing to already low unemployment and government policies .......

    News Round-up 27 November 2014

  • REIT promotes risk md

    Robert Rush has taken the role of chief risk officer at Two Harbors Investment Corp. Paul Richardson, who has served in that role over the past several years, will remain in his role as partner and chief risk officer for Pine River Capital Management, the parent of the company's external manager.

    Rush has served as Two Harbors' md for risk .......

    Job Swaps 27 November 2014

  • Agency issues CE RFC

    Moody's is seeking comment on proposed changes to the minimum portfolio credit enhancement levels in EMEA ABS and RMBS. The credit enhancement consistent with the highest rating achievable in a given market is currently the greater of: the model implied credit enhancement; the minimum portfolio credit enhancement; and expected loss multiple. The agency is proposing that the second of these .......

    News Round-up 27 November 2014

  • At the edge

    Peripheral RMBS prospects examined

    Representatives from Bloomberg, Prytania Group and DBRS discussed peripheral European RMBS in a live webinar hosted by SCI last month (view the webinar here). Topics included the development of the peripheral RMBS market versus core RMBS, a detailed look at the Irish and Spanish markets, pricing challenges and the impact that the ECB's ABSPP will have.

    Talking Point 27 November 2014

  • Paper trades ahead of Thanksgiving

    The US secondary markets have not shut down just yet, with SCI's PriceABS data picking up price talk and cover prices for US ABS, CLOs, CMBS and RMBS yesterday. In ABS there was more than US$100m out for the bid on BWICs, with supply divided between autos, credit card, equipment and student loan ABS.

    Each of .......

    Market Reports 26 November 2014

  • CBRC actions 'positive' for card ABS

    The China Banking Regulatory Commission's (CBRC) decision to fine seven banks for violations in their credit card businesses signals its intent to tighten underwriting and risk management standards among commercial banks, according to Fitch. This is positive for the performance of credit card portfolios and future credit card ABS in China, as it indicates that the regulator is moving pre-emptively .......

    News Round-up 25 November 2014

  • Reinsurance merger agreed

    Platinum Underwriters and RenaissanceRe have entered a merger agreement under which RenaissanceRe will acquire Platinum. Under the terms of the transaction, the common shareholders of Platinum will receive US$1.16bn of cash and 7.5 million RenaissanceRe common shares with an approximate value of US$76 per share, or approximately US$1.9bn in aggregate, representing a 24% premium to Platinum's closing price.

    At closing, .......

    Job Swaps 25 November 2014

  • Still no big ABSPP trades

    European ABS/MBS spreads are holding firm as the market continues to wait on significant ECB buying.

    "Spreads are staying stable as the market continues to expect the ECB to start buying in size, but every day seems to bring with it another day's delay," says one trader. "They bought some Arena in the primary market yesterday, but we haven't seen .......

    SCIWire 25 November 2014

  • ABSPP 'hinges' on mezz purchases

    The ability of the ECB's ABSPP to provide capital relief to eurozone banks could hinge on its plans to buy mezzanine tranches, says Fitch. The capital impact of the ABSPP purchases at different parts of the capital structure will vary with jurisdiction, underlying assets and the originating banks' approach to calculating credit risk.

    Fitch looked at three hypothetical structured finance .......

    News Round-up 24 November 2014

  • Cell tower auctions 'credit positive'

    The US Federal Communications Commission (FCC) last week completed 27 rounds of Auction 97, its ongoing wireless spectrum license auction, having received bids from 70 participants totalling US$33bn. The bids received are well beyond the FCC's aggregate reserve price of US$10.6bn and industry estimates of US$15bn.

    Moody's says in its latest Credit Outlook publication that the auction results thus far .......

    News Round-up 24 November 2014

  • Euro ABS/MBS wants more

    The ECB began ABSPP buying on Friday, but the European ABS/MBS market is still waiting for more action.

    "The ECB bought some Dutch RMBS on Friday, but thus far there's been no follow up trading," says one trader. "No volume has yet been reported on the Dutch RMBS purchases, but our sense is they weren't huge, so the market is .......

    SCIWire 24 November 2014

  • First Names branches out

    First Names Group has formed a global structured finance services unit in the US. Orlando Figueroa and Mark Ferraris have been appointed as mds to drive the business.

    Ferraris and Figueroa will be responsible for global strategy in delivering services through both First Names' existing network - including the UK, Luxembourg, Ireland, the Netherlands and Switzerland - and new jurisdictions. .......

    Job Swaps 21 November 2014

  • Broker expands into ILS

    Alwen Hough Johnson has established AHJ Capital Markets, which has been authorised by the UK Financial Conduct Authority. The new company will provide clients with access to risk transfer and capital products available in the financial markets.

    Initially, the company will help insurers to manage risk through reinsurance backed by ILS and to finance risk through debt and equity capital. .......

    Job Swaps 21 November 2014

  • ABSPP decision published

    The implementation of the ABSPP has entered into force, following yesterday's publication of the ECB's decision regarding the programme. The decision outlines the scope and eligibility criteria of the central bank's outright purchases.

    The decision confirms that, under the ABSPP, the ECB may instruct its agents to purchase eligible ABS on its behalf in the primary and secondary markets from .......

    News Round-up 20 November 2014

  • Call for ring-fencing clarity

    Questions remain over whether Chinese securitised assets under the Asset Backed Specific Plan (ABSP) can be ring-fenced for the ABSP's creditors in a bankruptcy ruling, Moody's reports. This is despite proposed changes by the China Securities Regulatory Commission (CSRC) in September.

    "Although the proposed changes have provisions suggesting that securitised assets should be ring-fenced from the bankruptcy estate of the .......

    News Round-up 20 November 2014

  • Economy supports Aussie outlook

    Moody's expects Australian RMBS, ABS and covered bonds to continue performing well in 2015. This is in spite of deteriorating collateral quality in new transactions in an environment of rising house prices.

    The agency says that steady performance will be supported by Australia's GDP growth - expected to be in the range of 2.5% to 3.5% in 2015 - similar .......

    News Round-up 20 November 2014

  • Euro ABS/MBS holds steady

    Despite the lack of news about ABSPP, the European ABS/MBS markets have held steady.

    "Spreads are holding firm this morning," says one trader. "We're seeing the Street trading some eligible paper, a few asset managers are starting to show bonds and there are a number of BWICs today, but it's really just a waiting game for the ECB."

    He continues: .......

    SCIWire 20 November 2014

  • Global variations in card ABS

    Credit card ABS in different jurisdictions incorporate a variety of structural features to address the credit risks inherent in such securitisations, says Moody's. In addition, the types of issuers and loans backing credit card ABS are different across countries.

    "General purpose and co-branded cards in the US, UK and Canada are typically issued by regulated banking entities," says Matias Langer, .......

    News Round-up 20 November 2014

  • Eclectic list fails to trade again

    A large proportion of the re-issued large eclectic BWIC of European assets from a bad bank (SCIWire passim) has failed to trade.

    The 37 line €276.502m auction was due at 14:00 London time today. However, 29 lines did not trade, including all of the SME CLOs on the list and all bar one of the CDOs.

    The bonds that did .......

    SCIWire 19 November 2014
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