ABS

  • 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

  • Commercial, residential solar risks weighed

    When considering the securitisation of commercial solar contracts, the assets are subject to less obsolescence risk than residential solar contracts, but face different types of contract risks (SCI 26 April). Sponsor and performance risks apply similarly for both residential and commercial solar contracts, however.

    Commercial entities are less likely than homeowners to stop payments on panels that technological changes over .......

    News Round-up 24 June 2013

  • Credit card performance to remain strong

    Moody's expects credit card trust collateral performance to remain near its current levels in the US, the UK and Canada through the end of 2013, as the steady improvement in performance since the recession comes to an end. However, collateral performance in Canada is anticipated to be relatively more sensitive to shifts in the country's unemployment rate than is the .......

    News Round-up 24 June 2013

  • German insolvency amendment 'credit negative'

    The German parliament last month passed an act amending the personal insolvency regime, shortening to three years from six the period after which a borrower under personal insolvency can discharge his remaining unsecured debt if he has repaid 35% of the total. The law will be effective from 1 July 2014.

    Moody's notes in its latest Credit Insight publication that .......

    News Round-up 20 June 2013

  • Card charge-off forecast lowered

    Steady improvement in early-stage delinquency rates, combined with stable roll rates point to a continued decline in US bank card trust charge-offs through the end of the year. As a result, Moody's has lowered its forecast for the Moody's Credit Card Index charge-off rate for 2013 to 3%-4%, down by 50bp from its forecast earlier this year.

    The agency expects .......

    News Round-up 20 June 2013

  • Spanish loan restructuring activity analysed

    Moody's believes the proportion of restructured loans backing more recent Spanish SME securitisations is higher than the reported figure. The largest 18 Spanish banks reported that by end-2012, on average, around 10% of their total lending portfolio consisted of refinanced or restructured loans. Restructured loans in their portfolios amounted to around €200bn.

    Moody's says in its latest Credit Insight publication .......

    News Round-up 19 June 2013

  • Subprime auto credit quality set to weaken

    Risk factors such as weakening loan credit, stiff competition among originators and readily available funding for ABS all portend higher credit losses for subprime auto lending, according to Moody's. Private equity money entering the market is further intensifying increasing competition from banks and credit unions.

    "The increased competition among subprime lenders is resulting in more loans to borrowers of weaker .......

    News Round-up 19 June 2013

  • Private student loan defaults decline

    Moody's expects its private student loan default rate index to continue falling year-over-year in 2013 with the pace of improvement continuing in the teens, as it has in the last four quarters. The default rate index of non-federally guaranteed student loans is also anticipated to remain higher than pre-recession levels.

    Though still high by historical standards, the unemployment rate - .......

    News Round-up 19 June 2013

  • CRA rules set

    New EU credit rating agency rules enter into force tomorrow (20 June). The aim is to increase rating agency accountability while reducing over-reliance on credit ratings, according to the European Commission.

    The new rules require financial institutions to strengthen their own credit risk assessment. European supervisory authorities should also avoid references to external credit ratings and will be required to .......

    News Round-up 19 June 2013

  • AA plans WBS

    The UK Automobile Association (AA) is prepping a whole business securitisation dubbed AA Bond Co. Proceeds will refinance part of the liabilities of the Acromas Group.

    The AA Group operates a roadside assistance service in the UK and Ireland, as well as providing complementary services, such as insurance, driving services and home emergency response. The AA provides breakdown services either .......

    News Round-up 18 June 2013

  • Funding, relations chief appointed

    Sallie Mae has named Steven McGarry as corporate finance svp. He will assume responsibility for all of the company's funding activities, as well as manage the corporation's rating agency, equity investor and fixed income investor relationships.

    McGarry joined the company's corporate finance team in 1997 and was most recently head of fixed income investor relations. Sallie Mae last month announced .......

    Job Swaps 18 June 2013

  • Moving on?

    The re-emergence of the European CLO market has many positiv...

    The evolving European securitisation market has seen several changes since the crisis, with many positive developments, particularly recently. However, certain issues still need to be resolved and - with the market improving - concern is growing that they may be forgotten about.

    Corporate trust service providers have experienced the market's lows as well as its highs and, while many recent .......

    News Analysis 18 June 2013

  • Indian ABS must account for law change

    A recent tax amendment relating to income distributed by securitisation trusts to Indian pass-through certificates may impact ratings, says Fitch. Changes must be made to transaction documentation to avoid downgrades.

    The amendment to the income tax law means Indian securitisation trusts are now required to pay tax on income distributed to investors. Previously, tax on income distributed by securitisation trusts .......

    News Round-up 14 June 2013

  • Euro default rate remains low

    Only 1.43% by original balance of European structured finance notes had defaulted by end-1Q13, according to S&P's latest quarterly transition study. The 12-month rolling downgrade rate for European structured finance fell to 21% at the end of the first quarter, while the 12-month rolling default rate remained relatively stable at 0.43%, given several new interest shortfalls and principal losses in .......

    News Round-up 13 June 2013

  • SLM exits Straight-A conduit

    Sallie Mae has closed a US$6.8bn credit facility to facilitate term securitisation of its federally guaranteed loans. The facility was oversubscribed by a syndicate of eight global financial institutions.

    The facility is secured exclusively by FFELP loans and will amortise over a one-year period. Its size exceeds the balance remaining in the company's Straight-A federally-sponsored financing programme and, as a .......

    News Round-up 13 June 2013

  • Emerging market

    Russian RMBS, ABS issuance gathering pace

    Russian RMBS issuance volume is expected to reach RUB50bn-RUB60bn this year, versus a total of RUB37bn in 2012, boosted by government purchase programmes. Demand is also emerging for consumer ABS, facilitated by the introduction of a new securitisation law and respective central bank standards that are expected to be finalised this autumn.

    The Russian RMBS market has been bolstered in .......

    News Analysis 13 June 2013

  • Spanish legislative changes examined

    Recent changes to Spanish mortgage legislation could increase loan repossession periods and potentially push up realised loan losses, according to S&P. At the same time, new guidelines that Spanish banks must employ when classifying loan restructurings in their financial statements may increase the transparency of lender asset quality.

    Two laws - Ley 1/2013 and Decreto Ley 6/2013 - became effective .......

    News Round-up 12 June 2013

  • Activity surge for Euro ABS

    Activity has picked up in the European ABS markets over the last couple of weeks. Primary issuance may slow during next week's IMN conference in Brussels, but secondary trading levels are expected to hold steady.

    "We have been seeing big bid-lists across credit and securitised sectors, as well as a couple of new deals hitting the market, which has been .......

    Market Reports 12 June 2013

  • New names added to SCI line-up

    Only a few tickets remain for SCI's 6th Annual Securitisation Pricing, Investment & Risk Seminar in New York. Over 200 attendees have registered for the event, which is being held tomorrow (13 June) at Bank of America's offices at 4 World Financial Center.

    New panellists have been added to the line-up over the last few days, including representatives from Hildene .......

    News Round-up 12 June 2013

  • Private ILS platform minted

    Tokio Solution Management and GC Securities have launched a private catastrophe bond platform called the Tokio Tensai Platform. The aim is to provide sponsors with a more efficient platform for funding excess of loss catastrophe reinsurance in the private capital markets.

    The platform is an alternative to the traditional Rule 144A offering process. Tokio Solution will allow clients to sponsor .......

    News Round-up 11 June 2013

  • Revised Punch proposal welcomed

    A revised restructuring proposal from pub operator Punch appears to address some of the main concerns with the previous proposal (SCI 11 February), while also containing a number of optional extras. The flexibility and improvement in terms for senior bondholders mean that the restructuring is more likely to be agreed, according to MBS analysts at Barclays Capital.

    "We would expect .......

    News Round-up 10 June 2013
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