ABS

  • Further container ABS calls anticipated

    TAL International has re-priced its TAL Advantage IV Series 2010-1 transaction via an amendment to the structure. The unusual move is expected to trigger more container ABS calls going forward.

    Under the amendment, the coupon on the note was lowered from 5.5% to 3.25% and the call date was pushed back from July 2013 to July 2015. "While the coupon .......

    News Round-up 21 May 2013

  • Improvement seen in timeshare ABS

    Total US timeshare ABS delinquencies for 1Q13 stand at 3.27%, down from 3.55% in 4Q12 and 3.58% in 1Q12, according to Fitch's latest index results for the sector. The improvement in timeshare ABS delinquencies last quarter is typical of springtime performance, the agency notes.

    Defaults for 1Q13 also decreased to 0.72% from 0.75% in 4Q12. Delinquencies are now 0.82% lower .......

    News Round-up 21 May 2013

  • FFELP SLABS criteria updated

    Fitch has updated its criteria for US FFELP student loan ABS. The agency has placed 192 tranches on rating watch negative and 25 tranches on rating watch positive as a result.

    The criteria update reflects a new analytical tool Fitch has introduced as part of its rating process. The new tool simulates cashflows based on collateral stratifications and deal structure, and .......

    News Round-up 20 May 2013

  • Greek country ceiling raised

    Fitch has upgraded 24, affirmed five and downgraded one tranche from 12 Greek structured finance transactions (two ABS and 10 RMBS). In addition, the three tranches of Lithos Mortgage Finance have been placed on rating watch evolving (RWE), pending the outcome of investigation into the transaction's recent performance.

    The action follows the revision of the country ceiling for Greece to .......

    News Round-up 17 May 2013

  • Uncertainty remains for tobacco ABS

    S&P has published a report detailing a number of significant developments related to tobacco MSA settlements over the last six months. The agency says that these developments have provided additional clarity around certain aspects of the tobacco securitisation segment, while leaving ambiguity in others.

    For example, the release of the term sheet - an agreement between a number of participating .......

    News Round-up 16 May 2013

  • Cantor eyes primary CDO desk

    Cantor Fitzgerald has made four key hires across the CLO, CDO and structured credit segment. Florian Bita joins the team in New York, while Jason Eppleston, Martin Deville and Damian Horton join Cantor Fitzgerald Europe in London.

    Bita joins Cantor as md and is responsible for US CLO secondary trading. In addition, he will help build out the firm's primary .......

    Job Swaps 16 May 2013

  • Varied PDL performance highlighted

    While payroll deductible loans (PDLs) exhibit lower default rates than traditional consumer loans, asset performance varies by country, Fitch reports.

    "Regulatory frameworks, originator profiles, loan characteristics and origination processes are key country differentiators that influence diverging performance across the region," confirms Bernardo Costa, senior director in Fitch's Latin America structured finance group.

    PDLs are granted to formal employees and social .......

    News Round-up 15 May 2013

  • Counterparty criteria tweaked

    Fitch has updated its criteria for the analysis of counterparty risks in structured finance transactions and covered bond programmes. The criteria has been published for the first time in one criteria report, which combines content from previously separate reports. The update contains limited analytical changes and no rating impact is expected.

    Combining the criteria is intended to provide simplicity, in .......

    News Round-up 14 May 2013

  • Great Lakes loan sale proposed

    The Higher Education Loan Authority of the State of Missouri (MOHELA) is proposing to sell approximately US$11.9m of student loans currently serviced by Great Lakes Educational Loan Services. This represents all of the 3,394 loans that are currently being serviced by Great Lakes and constitutes 1.4% of the 11th General Resolution ABS trust.

    The transaction would also remove Great Lakes .......

    News Round-up 10 May 2013

  • US ABS still quiet, despite auto injection

    Secondary US ABS activity was once again fairly light yesterday, with auto paper dominating the session. BWIC volume reached around US$74m, with SCI's PriceABS data listing 18 line items for the sector.

    Among the auto names circulating yesterday were several Avis Budget Rental Car Funding tranches, including the AESOP 2011-1A A bond, which was talked in the 20s. .......

    Market Reports 9 May 2013

  • Cat bonds set for record issuance

    US$520m of catastrophe bond issuance was offset by US$352.5m of maturities in 1Q13, resulting in an increase of US$4167.5m in risk capital outstanding, according to GC Securities. The firm expects the market this year to approach, if not exceed, the record for annual issuance of US$7bn set in 2007.

    This forecast is dependent on cat bond market pricing remaining stable .......

    News Round-up 9 May 2013

  • Euro SME deals remain 'uneconomic'

    The market for European SME securitisations remains shut, despite significant spread contraction, Fitch reports. The agency notes that this is mainly because securitisations of loans to SMEs, if placed with investors, are uneconomic from the lenders' perspective.

    "The prevailing view is that SME securitisation - due to the lack of liquidity in the market, as well as the perceived additional .......

    News Round-up 7 May 2013

  • Solid performance for MM tranches

    Money market (MM) tranches that are part of global structured finance transactions performed well throughout the crisis, according to Fitch. This is reflected in the solid ratings performance of these tranches, as well as their strong repayment trends, the agency reports.

    MM tranches include those where the term of assets and liabilities is matched (for example, ABS) and those where .......

    News Round-up 7 May 2013

  • Strong card ABS performance continues

    Positive macro news and improving consumer health pushed US credit card ABS performance to levels not seen in more than two decades, according to the latest monthly index results from Fitch. Credit card ABS performance once again hit or held near-record levels on most fronts.

    Prime 60+ day delinquencies touched record lows, while retail late-pays approached record lows. Excess spread .......

    News Round-up 3 May 2013

  • ECB boost for SME ABS

    The ECB has begun consultations with the European Council and EIB in order to promote a functioning market for SME ABS. While the move has been welcomed as a step in the right direction, market participants are not expecting any significant progress in the near future.

    ABS analysts at JPMorgan highlight the cautious tone taken by the ECB. With consultations .......

    News 3 May 2013

  • ABS, RMBS sales trio recruited

    Pierpont Securities has hired John Duffy, John Ou and Brian Hartmann to its sales team. The three help build out the firm's structured finance capabilities.

    Duffy specialises in mortgages and has previously worked at Deutsche Bank, JPMorgan and DLJ Securities. Ou joins the structured finance sales desk from Brean Capital and will cover RMBS and ABS, reporting to md Kim .......

    Job Swaps 1 May 2013

  • Scrutiny required for rehab loans

    US FFELP student loan ABS deals with larger concentrations of rehabilitation loans warrant additional scrutiny, according to Fitch. With a trend towards larger concentrations of rehab loans in FFELP ABS over the past couple of years, the agency has compared performance of rehab loan trusts to non-rehab trusts to confirm whether specific cashflow assumptions are consistent with actual performance.

    "Compared .......

    News Round-up 1 May 2013

  • Solid floorplan performance predicted

    Solid asset performance and higher auto sales will likely increase demand for wholesale dealer lending and drive issuance of new US dealer floorplan ABS, Fitch suggests. But the agency points out that the sector is not without potential potholes.

    US auto dealerships are in solid shape through 1Q13, with soaring profit levels, while expenses are being held in check. However, .......

    News Round-up 1 May 2013

  • Strong seasonal results for auto ABS

    US auto ABS posted stellar seasonal results last month, according to Fitch. Both losses and delinquencies declined across prime and subprime auto ABS, even as used vehicle values softened, and are expected to moderate further this year.

    The unemployment rate dropped to a three-year low of 7.6%, the lowest level since hitting a high of 10% in October 2009. The .......

    News Round-up 30 April 2013

  • Recent vintages seen in ABS session

    US ABS BWIC volumes totalled around US$93m yesterday, with secondary flows remaining light in the run-up to month-end. SCI's PriceABS data shows a number of recently issued bonds among those out for the bid.

    The most recently issued deal to see a tranche show up on yesterday's bid-lists is Hardee's Funding/Carl's Jr Funding Series 2013-1. A US$5m slice .......

    Market Reports 30 April 2013

  • SIV suit settled

    Moody's, Morgan Stanley and S&P have settled out of court with Abu Dhabi Commercial Bank (ADCB) in connection with the Cheyne Finance SIV fraud trial (SCI 12 April). ADCB filed suit in 2008 in the New York district courts to recover its original investment of US$10m in Cheyne notes.

    .......

    Job Swaps 30 April 2013
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