ABS

  • Analytics portal strengthened

    Moody's Analytics is expanding the coverage of its Structured Finance Portal to include auto, credit card and student loan ABS. The service offers innovative content and analytics, delivered in real-time in an easy-to-use web-based format.

    Initially focused on CLOs, the portal includes loan-level data to show which deals and managers are most exposed to a loan and who has been .......

    News Round-up 23 September 2014

  • Rating methodologies released

    ARC Ratings has published its global consumer ABS rating criteria, which apply to transactions that benefit from a diversified portfolio with a large number of underlying obligors. The criteria cover analyses of expected defaults, delinquencies, recoveries, prepayments and asset yield, which are supplemented by a cashflow analysis. Although applied globally, each individual country and specific transaction may give cause to .......

    News Round-up 23 September 2014

  • Climate change cat bonds prepped

    African Risk Capacity (ARC) has unveiled the Extreme Climate Facility (XCF), a multi-year funding mechanism that will issue climate change catastrophe bonds. The bonds - which are expected to be issued in 2016 - will provide additional financing to participating countries to enhance their climate adaptation investments, in the event that weather shocks increase in occurrence and intensity across the .......

    News Round-up 23 September 2014

  • Aircraft ABS issuance set to rise

    Fitch expects stable asset and rating performance for recent-vintage aircraft ABS in the near term, thanks to improved global commercial air travel industry fundamentals, strong asset quality and adequate credit enhancements to weather future volatility. Combined with the increased need for capital markets financing for lessors, these conditions will likely lead to increased issuance in the sector.

    "2014 has seen .......

    News Round-up 22 September 2014

  • Tax lien methodology published

    Kroll Bond Rating Agency has released its methodology for rating property tax lien ABS transactions. KBRA's rating of a tax lien ABS transaction represents a blended analysis of the key qualitative and quantitative credit risk determinants.

    The agency notes that the credit analysis of tax lien ABS can vary by transaction, not only due to collateral characteristics and transaction structure, .......

    News Round-up 22 September 2014

  • Cat bond event report awaited

    S&P has placed its single-B minus rating on MultiCat Mexico series 2012-I class C notes on credit watch with negative implications, reflecting the fact that a trigger event may have occurred with respect to the catastrophe bond. The class C notes cover losses in Cabo San Lucas in Mexico, near which Hurricane Odile made landfall on 15 September.

    Swiss Re .......

    News Round-up 22 September 2014

  • ABS ratings approach released

    Morningstar Credit Ratings has published its methodology for US ABS ratings, outlining the principles the agency's analysts apply when rating and monitoring ABS transactions. The methodology serves as Morningstar's framework for evaluating financial, operating and corporate asset transactions. The move progresses the agency's plans to expand into ABS ratings services (SCI 8 April).

    Morningstar's ABS ratings methodology addresses seven areas .......

    News Round-up 22 September 2014

  • Euro 'chips off the table'

    Both the primary and secondary European markets have been busy recently as the market continues to benefit from the ECB bounce. However, there has also been an increase in the number of DNTs on BWICs as an element of caution creeps into the market.

    "Since the ECB's announcement the European market has really picked up. What we have seen over .......

    Market Reports 19 September 2014

  • Back to work after Scots decision

    After monitoring the build up very closely, the European ABS market has reacted calmly to the result of the Scottish independence referendum. While the impact of a 'Yes' vote was expected to be limited, the 'No' result has ensured business can continue as usual.

    "We were watching this with interest but it was always going to be a minimal impact. .......

    SCIWire 19 September 2014

  • Declining shipments hurt tobacco ABS

    Around 80% of the aggregate outstanding balance of all tobacco settlement ABS bonds rated by Moody's may not pay down in full by maturity according to current projections, says the rating agency. Tobacco settlement ABS payments are tied to cigarette shipment volumes and shipment declines are projected to be between 3% and 4% per year.

    The average decline in shipments .......

    News Round-up 19 September 2014

  • Uncommon deal type trades

    Yesterday's US ABS session saw a rarely-witnessed tax lien deal included on BWIC. The TAX 2014-1A NOTE tranche was covered in the session at mid/high-99.

    SCI's PriceABS also recorded price talk for the tranche in the 100 area. The deal is the first tax lien ABS to appear in the PriceABS archive.

    .......

    SCIWire 19 September 2014

  • Spanish seniors trade well

    The 13:00 London time Spanish seniors BWIC has traded at or above talk and sparked some activity in similar deals in the bilateral market.

    The seven line list covered as follows: AYTH III A at 98.57, AYTH M1 A at 98.71, AYT 2 A2 at 99.65, BBVAL 2007-1 A1 at 99.17, BCJAM 4 A2 at 94.913, RHIPO 7 A1 at .......

    SCIWire 18 September 2014

  • Bid-lists bring ABS variety

    It was a busy session in US ABS yesterday, with SCI's PriceABS data capturing a range of aircraft, auto, credit card and student loan names out for the bid. Vintages ranged from 2000 to 2013 and there was even a timeshare ABS name in the mix.

    Among the aircraft names was one of the earliest-vintage tranches .......

    Market Reports 18 September 2014

  • Dim Sum ABS mooted

    Moody's notes in its China Securitisation Compendium that, with the majority of recent Chinese issuance being CLOs and auto ABS, market participants are considering other asset types for securitisation. These include credit card and equipment receivables - both big ticket items (such as leases backed by aircraft and large machinery) and small ticket items (such as small equipment and auto .......

    News Round-up 18 September 2014

  • Agreement to boost Punch bonds

    Punch bondholders yesterday voted in favour of restructuring its capital structure. Most bonds are expected to rally strongly as a result.

    Barclays Capital analysts expect Punch bonds could rally strongly enough to reach comparable pricing levels to Enterprise Inns. The latter has historically had a superior portfolio, but has not sold down its estate as aggressively as Punch and the .......

    News Round-up 18 September 2014

  • BWICs still dominating Euro ABS

    Today sees another large slew of European ABS and MBS BWICs, which is dampening other secondary market activity.

    "It's a question of getting through a lot of line items again today. It's been the same story for the past few days, throughout which we've seen reasonably good execution," says one trader.

    The volume of lists has meant that the rest of .......

    SCIWire 18 September 2014

  • Deeper data

    Aligning loan-level disclosure requirements

    The US SEC last month approved the final Regulation AB 2 rules, significantly changing asset-level data disclosure requirements (SCI 28 August). The rules will not come into force for a couple of years, but their effects could be felt sooner and will further align the US market with what is already common in Europe.

    In Europe, loan-level disclosure through the .......

    News Analysis 18 September 2014

  • Amortisation waiver anticipated

    Natixis Factor expects the senior funding base for its FCT Factoring Asset Securitisation Transaction (FAST) to fall below the outstanding class A1 note balance this month, due to a combination of seasonality and temporary effects. A waiver of the class A1 note amortisation is therefore being contemplated.

    Should such a waiver be accepted by the noteholders and the management company .......

    News Round-up 17 September 2014

  • Subprime auto 'domino risk' outlined

    Fitch notes that rising US subprime auto lender competition and an increase in start-ups means problems at one lender could quickly spread to others. The agency examines in a new report why 'domino risk' is higher in subprime auto lending than in other ABS sectors.

    In Fitch's view, the risks to the sector mean that most subprime auto transactions would .......

    News Round-up 17 September 2014

  • Rationalisation for cat bond market?

    Continued demand from hedge funds and institutional investors has pushed outstanding catastrophe bond volumes approximately 12% higher so far in 2014 than as at end-2013, to reach a total of US$22.9bn, according to Moody's latest Reinsurance Monitor. Peril coverage continues to widen across a range of risk types and geographies, while there are signs that a more rational marketplace is .......

    News Round-up 17 September 2014

  • Credit card criteria updated

    Moody's has updated its global methodology for rating credit card and revolving consumer loan ABS, following an earlier RFC on the proposal (SCI 29 April). The new approach more explicitly incorporates the credit quality of the sponsor into the agency's rating analysis and also reflects other modifications to assumptions about credit card portfolio performance under stress.

    "Credit cards and revolving .......

    News Round-up 17 September 2014
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