ABS

  • RFC issued on CRA3 implementation

    ESMA has published a discussion paper dealing with the implementation of the CRA3 Regulation, which entered into force last month (SCI 19 June). ESMA is required to draft regulatory technical standards (RTS) regarding: disclosure requirements on structured finance instruments (SFIs); the European Rating Platform (ERP); and the periodic reporting on fees charged by rating agencies.

    The SFI draft RTS will .......

    News Round-up 10 July 2013

  • Insolvencies weigh on leasing ABS

    An increase in German corporate insolvencies in 1H13 is expected to result in a moderate increase in default rates in commercial leasing ABS transactions, according to Fitch, although the agency does not anticipate any impact on current ratings. The first-half increase is consistent with its deal-by-deal base-case default assumptions and so observed default rates should remain below those assumed in .......

    News Round-up 9 July 2013

  • Venture debt ABS closes

    Specialty finance company Horizon Technology Finance Corporation has completed its debut securitisation. The US$90m Horizon Funding Trust 2013-1, backed by venture capital debt, is rated A2 by Moody's and was arranged by Guggenheim Securities.

    The notes bear a fixed interest rate of 3% and have a stated maturity date of 15 May 2018. The transaction has enabled Horizon to both .......

    News Round-up 8 July 2013

  • Dutch bank adds senior analyst

    Ruben van Leeuwen has joined Rabobank as senior ABS analyst. He joins from ABN Amro and will provide sell-side research with a focus on Dutch RMBS and covered bonds.

    At ABN Amro he was a fixed income strategist, portfolio manager and senior US economist. His various roles included covering Dutch and global credit markets and the development of fixed income .......

    Job Swaps 8 July 2013

  • Flexible cat bond debuts

    An unusual catastrophe bond, sponsored by AIG, is expected to close next week. Dubbed Tradewynd Re 2013, the transaction features a variable attachment point, designed to provide the sponsor with risk management flexibility.

    The US$125m five-year single-tranche of notes is rated single-B plus by S&P and is expected to pay 825bp over the US money market fund yield. Aon Benfield and .......

    News Round-up 5 July 2013

  • Negative outlook for UK WBS

    Fitch says that the outlook for UK whole business securitisations (WBS) remains predominantly negative, largely due to weak economic conditions and the consequent pressures on consumer and government spending. In particular, the main UK WBS sectors - pubs and care homes/hospitals - are expected to continue to struggle in the latter stages of 2013.

    The UK government's surprise move to .......

    News Round-up 4 July 2013

  • Europe reacts to unusual RMBS, ABS deals

    It has been an interesting couple of weeks in European RMBS and ABS, with noteworthy primary issuances in each sector grabbing investors' attention. A quiet end to this week is expected as the US marks Independence Day, although activity in the secondary markets has been relatively strong up to this point.

    "European RMBS spreads definitely widened out on the back .......

    Market Reports 4 July 2013

  • Improving economy bolsters SLABS performance

    Outstanding student loans approached nearly US$1trn at the end of last year, becoming the second largest source of US consumer debt after mortgage loans. Nevertheless, student loan ABS performance is primed for a brighter outlook due to the improving economy.

    "Student loan ABS performance is highly correlated with the economy when it comes time for students to begin paying their .......

    News Round-up 3 July 2013

  • Chinese securitisation 'underdeveloped'

    Fitch believes that the Chinese securitisation market is underdeveloped, reflected in the small programme size of the third round of the credit asset securitisation (CAS) pilot programme launched in May 2012 at RMB50bn (US$8.2bn). The programme limit - accounting for less than 0.1% of the commercial banking system's assets in the country - is insufficient to fulfil the needs of .......

    News Round-up 3 July 2013

  • Minimal impact expected from FDSL hike

    As of 1 July, interest rates on federal direct subsidised loans (FDSL) for US college students will double to 6.8%. Although the increase is being portrayed as harmful to students who would be driven further into debt, Moody's expects the overall effect on student loan securitisations to be minimal.

    The agency notes in its latest Credit Outlook publication that the .......

    News Round-up 2 July 2013

  • Asia managing partner poached

    Michelle Taylor and her team have joined Jones Day's banking & finance group in Hong Kong. She was formerly Asia managing partner and China office leader with Orrick. Her practice focuses on structured finance, real estate finance, debt capital markets, general banking and securitisation, where she has almost 20 years of experience.

    .......

    Job Swaps 2 July 2013

  • Subprime survives trading drop-off

    It was a quiet start to the holiday week in the US as the market moves into the third quarter. Non-agency RMBS BWIC volumes remain muted at US$90m, with dealer offering levels largely unchanged.

    Subprime RMBS supply held up better than other sectors yesterday. SCI's PriceABS data shows a number of subprime tranches for the session, although a .......

    Market Reports 2 July 2013

  • Student list buoys ABS session

    US ABS secondary trading was dominated yesterday by a large student loan list, during what was otherwise a quiet session. BWIC volume was just under US$100m, with aircraft ABS also accounting for a modest amount of paper.

    The most recently issued student loan bond circulating yesterday was SLMA 2013-R1 A, which was talked in the low-200s, according to SCI's PriceABS .......

    Market Reports 28 June 2013

  • Data, legal challenges remain for Chinese ABS

    More securitisation transactions are expected to launch in China, following new regulations promulgated under the specific asset management plan (SAMP) and the credit asset securitisation pilot scheme (CAS). However, challenges remain in data robustness, legal enforceability and transaction structure, according to Fitch.

    "Due to the rapid and continuous growth of China's economy in the past 30 years, asset delinquency and .......

    News Round-up 28 June 2013

  • Auto delinquencies hit 10-year low

    US prime auto ABS 60+ delinquencies stood at 0.29% in May, according to Fitch's latest index results - the lowest level seen in the last 10 years and unchanged month-over-month (MOM). The rate in May was also 24% improved year-over-year (YOY).

    Prime annualised net losses (ANL) posted a strong 30% drop in May over April, down to 0.17%. This rate .......

    News Round-up 28 June 2013

  • Casting nets

    Hunt for relative value puts range of options on the table

    European primary issuance may have been patchy this year, but liquidity in the secondary market has generally increased. The hunt for relative value has become all the more pressing as spreads have tightened.

    Regulatory initiatives such as Solvency II and CRD IV weigh on investors' minds, but until regulations come into force it is always possible that their provisions will .......

    News Analysis 28 June 2013

  • SME ABS proposals put forward

    The EIB and the European Commission have released a joint report detailing how the €10bn capital increase decided by Member States last year has been implemented. Entitled 'Increasing lending to the economy: implementing the EIB capital increase', the report also outlines new joint initiatives that aim to revive the structured credit markets to support SME lending.

    Collaboration by the EIB .......

    News Round-up 28 June 2013

  • Shifting sands

    European securitisation market seeks stability

    The first half of 2013 has seen significant changes in the European ABS market's investor base, issuance patterns and regulatory landscape. The sector has gone through a number of cycles since the financial crisis, but now there are suggestions of a 'new normal' taking hold.

    The RMBS market is one in which the investor base has changed markedly. One asset-backed .......

    News Analysis 27 June 2013

  • Trading vet moves on

    Southwest Securities has appointed George Smith as svp in its taxable fixed income division in New York. In his new position, he will manage MBS, ABS and CMBS trading.

    Smith was previously md, head of MBS/ABS/rates trading and structured finance at Gleacher. Before that, he worked as md, head of MBS/ABS trading and structured finance at Cantor Fitzgerald. He has .......

    Job Swaps 26 June 2013

  • Secondary traders seek Spanish tranches

    There was a Spanish flavour to yesterday's European ABS secondary trading, with a number of auto bonds also showing up on BWICs. In addition, several Spanish RMBS tranches were available, as well as a long list of Granite bonds.

    SCI's PriceABS data shows a number of Spanish consumer ABS tranches that circulated in yesterday's session. Among them was .......

    Market Reports 26 June 2013

  • ABS fastest out of the blocks

    US ABS secondary volume has started the week strongly, helping to compensate for lower levels in non-agency RMBS. Supply on Monday was elevated across the credit card, auto loan and student loan sectors.

    Around US$350m of ABS bonds circulated on BWICs yesterday, with auto, card and student paper dominating the session. A mix of various vintage senior and subordinate tranches .......

    Market Reports 25 June 2013
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