ABS

  • Private SLABS index launched

    Fitch has rolled out the latest of its series of structured finance index reports - a US Private Student Loan ABS Index. The report - which tracks delinquency and default rates for private student loan ABS, as well as new issuance trends - is updated quarterly.

    An improving economy is positioning US private student loan ABS for a more stable .......

    News Round-up 15 May 2014

  • Tariff deficit criteria finalised

    Fitch has released its new criteria for rating Portuguese and Spanish electricity tariff deficit (TD) securitisations, following the publication of an exposure draft (SCI 4 March). There are no rating implications for existing TD securitisations as the criteria framework broadly reflects analytical practices that the agency has already followed when rating these transactions.

    Fitch believes that the ratings of TD .......

    News Round-up 15 May 2014

  • ABS activity leans on auto supply

    US ABS bid-list activity picked up yesterday on the back of higher auto and student loan supply. BWIC volume was around US$120m, with auto names accounting for half of the tranches captured by SCI's PriceABS data.

    Among the auto ABS out for the bid yesterday were three AFIN tranches, including AFIN 2014-1 A1A, which was covered at plus .......

    Market Reports 15 May 2014

  • Portuguese sovereign ceiling lifted

    Moody's has upgraded Portugal's government bond rating to Ba2 from Ba3 and placed the rating on review for possible further upgrade. Concurrently, it raised the country's local and foreign currency bond and deposit ceilings to Baa1 from Baa3 to reflect the country's reduced economic, legal and political risks.

    Consequently, the maximum achievable rating for Portuguese structured finance rated transactions has .......

    News Round-up 14 May 2014

  • SLABS refi bill introduced

    Senator Elizabeth Warren last week introduced legislation - the 'Bank on Students Emergency Loan Refinancing Act' - that would allow FFELP, FDLP and certain private student loan borrowers to refinance existing loans into new Federal loans at the interest rates offered under the Federal loan programmes. A companion bill was introduced in the House by Representatives John Tierney and George .......

    News Round-up 13 May 2014

  • Aussie reporting requirements enhanced

    The Reserve Bank of Australia (RBA) has published updated and more detailed information on how its new reporting requirements for repo-eligible ABS will be implemented. In particular, all data for each securitisation must now be provided on a monthly basis, no later than seven calendar days after an issuer's specified coupon payment date and the equivalent monthly anniversary in non-coupon-payment .......

    News Round-up 13 May 2014

  • ILS allocations set to rise

    Catastrophe reinsurance capacity is expected to double and reach US$100bn over the next few years, driving more institutional investors to allocate to the ILS sector. The search for yield is pulling ILS instruments towards mainstream investment tools, presenting new challenges for investment managers, according to a new report from Clear Path Analysis.

    On average, ILS investments represent 1%-3% of pension .......

    News Round-up 12 May 2014

  • Container redemptions picking up

    Container ABS investors face a tight technical environment, driven by a slower primary market and a pick-up in redemptions. Container lessors have called 10 deals since end-3Q13, including four year-to-date.

    Textainer is the latest lessor to follow the trend, announcing last week that it will redeem three deals - widely expected to be its 2005, 2011 and 2012 transactions. The .......

    News Round-up 9 May 2014

  • Mexican cat bond affirmed

    S&P has affirmed its single-B rating on the US$140m MultiCat Mexico series 2012-1 class A notes. The move comes after Swiss Re submitted an event notice to the calculation agent, AIR Worldwide Corp, following the 18 April earthquake in the state of Guerrero.

    The MultiCat ILS programme is sponsored by Swiss Re, which reinsures AGROASEMEX, a state-owned insurance institution set .......

    News Round-up 9 May 2014

  • Liquidity rules could 'hurt demand'

    S&P says that upcoming rules governing bank liquidity could hurt demand for European securitisations. The agency also notes that the treatment of securitisations is less favourable than that of some other debt securities, such as covered bonds and corporate bonds, which could significantly reduce banks' incentives to hold securitisation tranches.

    "Historically, banks have been one of the largest investor constituencies .......

    News Round-up 9 May 2014

  • ILS vehicle debuts

    Jardine Lloyd Thompson Capital Markets has closed a US$10m private placement catastrophe bond, Market Re 2014-1. The Market Re vehicle has been established with the aim of making the capital markets more accessible to issuers seeking to issue smaller-sized ILS transactions.

    "We have worked closely with our strategic service partners to build a scalable vehicle that will open up a .......

    News Round-up 9 May 2014

  • US ABS secondary supply picks up

    US ABS BWIC activity picked up to around US$177m yesterday - up from just US$58m the day before - with a mix of auto and student loan bonds driving supply. SCI's PriceABS data shows 15 unique US ABS tranches out for the bid.

    Among the auto names were several DriveTime tranches, including DTAOT 2011-2A D, which was talked .......

    Market Reports 8 May 2014

  • 'Type 1' capital charges lowered

    EIOPA has updated its technical specifications for the Solvency II preparatory phase. The proposal includes lower capital charges for Type 1 securitisations.

    Proposed capital charges for triple-A, double-A, single-A and triple-B rated Type 1 bonds now stand at 2.1%, 4.2%, 7.4% and 8.5% per year of duration respectively. Type 1 securitisations are defined as those backed by residential mortgage loans, .......

    News Round-up 8 May 2014

  • CLO research analyst added

    Citigroup has added Maggie Wang to its CLO research team in New York. She joins as a director and will start in June.

    Wang was most recently head of US CLO and CDO research at JPMorgan, where she also closely followed the ABS, CMBS and high yield markets. She has also worked for EMC and Siemens.

    .......

    Job Swaps 8 May 2014

  • Positive credit card trends continue

    Fitch's Prime Credit Card Charge-off Index increased slightly to 3.04% for the March collection period, after declining for the past two months. The index has declined by 24% year-over-year (YOY) and is now 74% below its historic high of 11.52% reached in September 2009.

    Meanwhile, Fitch's Prime Credit Card 60+ Day Delinquency Index fell by 6bp to 1.17% in March, .......

    News Round-up 7 May 2014

  • Pricing partnership formed

    SCI has launched a partnership with Intex to provide INTEXcalc users with free trial access to SCI PriceABS market prices for securitised products. SCI PriceABS is a daily secondary market colour and price service that includes pre- and post-auction price talk and covers/traded prices for ABS, CMBS, RMBS and CDO/CLO bonds across Europe and the US.

    The SCI .......

    News Round-up 7 May 2014

  • Repayment plans positive for SLABS

    The US Department of Education (DOE) last week released data showing a sharp increase in Federal Direct Loan recipients' use of student loan debt repayment programmes that lower monthly payments if federal student loan debt is high relative to the borrower's income. Moody's notes in its latest Credit Outlook publication that the use of income-driven repayment plans by Direct and .......

    News Round-up 6 May 2014

  • Smaller CRA network proposed

    The European Commission has adopted a report addressed to the European Parliament and Council on the feasibility of a network of smaller credit rating agencies (CRAs) in the EU. The report assesses how the establishment of such a network could contribute to the strengthening of smaller CRAs, facilitating their growth to become more competitive market players.

    The report proposes the .......

    News Round-up 6 May 2014

  • Financial data firm to float

    Markit has filed for a US IPO. The IPO is understood to be currently valued at US$750m, although that is thought to be a placeholder subject to change.

    The firm was valued at around US$5bn when Singapore's sovereign wealth fund Temasek purchased a stake last year (SCI 22 May 2013). Joint bookrunners for the proposed offering will be: Bank of .......

    Job Swaps 6 May 2014

  • SLM ratings affirmed post-split

    Moody's has affirmed the ratings of 475 classes of Sallie Mae's FFELP and private student loan securitisations, impacting approximately US$117bn of ABS. The affected collateral is sponsored, administered and serviced by Navient, following the 1 May restructuring of SLM Corp (SCI 15 April).

    Under the split, Navient Corp retains all of the former company's FFELP and private educational loan portfolios, .......

    News Round-up 6 May 2014

  • Credit card issuance set to rise

    DBRS has published the second edition of a Europe-wide index of credit card securitisations. The latest report includes the addition of recent ABS from Carrefour and El Cortes Ingles.

    The report finds that credit card transactions across Europe are experiencing continually decreasing charge-off levels, falling to 3.5% in February 2014 from 4.8% in February 2013. French credit card charge-offs in .......

    News Round-up 6 May 2014
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