ABS

  • Consumer finance platform expanded

    Finacity Corporation has hired Paul Jenison to lead its efforts to facilitate the securitisation and financing of consumer receivables. Jenison was formerly at PaineWebber and at Prudential Securities.

    .......

    Job Swaps 17 April 2013

  • Call for project finance to diversify

    In just two years, shadow banking finance for infrastructure projects has risen from virtually zero to an estimated US$20bn, according to S&P. The agency expects such funding to climb further this year to a projected US$25bn.

    "Traditional project finance lenders - governments and the banks - are under severe economic pressure while demand for capital to fund projects is growing," .......

    News Round-up 17 April 2013

  • APAC outlook remains stable

    Fitch reports that the Asia Pacific structured finance transactions it rates were mostly affirmed in the first quarter, with Japan being the only country that witnessed downgrades. Japan saw 11 tranches from four CMBS downgraded during the quarter, all from already distressed levels (triple-C and below).

    Australia saw 256 affirmations from 73 transactions in 1Q13, most of which were from .......

    News Round-up 17 April 2013

  • Macro weakness skews rating transitions

    By end-2012, only 1.37% by original issuance volume of European structured finance notes outstanding in mid-2007 had defaulted, according to S&P's latest quarterly ratings transition study.

    "Consumer-related securitisations in particular have seen solid credit performance through the crisis, with a cumulative default rate since mid-2007 of only 0.04%," confirms S&P credit analyst Arnaud Checconi. "In addition, we estimate that more .......

    News Round-up 16 April 2013

  • High ratings stability seen in SME ABS

    EMEA SME ABS ratings stability has been high over the past five years, according to Moody's. As of October 2012, 50% of the tranches rated Aaa in February 2007 or later either retain their Aaa ratings or retained their Aaa ratings until the rating was withdrawn.

    This level rises above 90% if only transactions in Belgium, the Netherlands and Germany .......

    News Round-up 16 April 2013

  • Spread volatility presents ABS opportunities

    Spread volatility in US consumer ABS has increased markedly since the financial crisis. This trend is set to hold true for the foreseeable future and could bring with it relative value opportunities for investors to exploit.

    ABS analysts at Wells Fargo have compared changes in generic spread levels for the prime and subprime auto ABS sectors in a pre-crisis period .......

    News 16 April 2013

  • Sovereign ratings cap mulled

    S&P is reviewing the methodology it applies when assigning structured finance ratings above the rating on the sovereign for the country where the securitised assets are domiciled. The objective of the criteria review is to promote transparency and comparability across all S&P ratings globally and to address the recent experience in some eurozone member countries, according to the agency.

    The criteria .......

    News Round-up 15 April 2013

  • Residual SLABS prepped

    Sallie Mae is in the market with the first residual student loan ABS in over a decade. Dubbed SLM Student Loan EDC Repackaging Trust 2013-M1, the US$225m transaction is backed by the ownership certificates of residual interests in the SLM Student Loan Trust 2006-8, 2006-9 and 2007-1 deals.

    The portfolios collateralising the underlying trusts consist of FFELP consolidation loans, as .......

    News Round-up 12 April 2013

  • SIV fraud trial due next month

    On 13 May the US District Court for the Southern District of New York is scheduled to start jury selection for the Abu Dhabi Commercial Bank trial, in which Moody's, Morgan Stanley and S&P are named as co-defendants. The litigation relates to the sale of the Cheyne Finance SIV, which was restructured in 2008 (SCI 18 June 2008).

    The suit .......

    Job Swaps 12 April 2013

  • Debut SFIG conference announced

    The Structured Finance Industry Group (SFIG) is set to hold its first annual industry conference in Las Vegas on 22-24 January 2014, just days before the American Securitization Forum's conference is due to begin there on 26 January. The move comes less than a month after the association was formed (SCI 15 March).

    SFIG has partnered with IMN to host .......

    News Round-up 11 April 2013

  • APAC natural disasters tested ratings assumptions

    Fitch reports that the major natural disasters that affected the Asia-Pacific region from 2010 to 2012 have not had any rating impact on its rated structured finance transactions. Disasters over the period included the Japanese earthquake and tsunami of March 2011; the earthquakes of September 2010 and February 2011 in Canterbury, New Zealand; and the worst flooding in decades to .......

    News Round-up 10 April 2013

  • Ratings differentiation

    Call for improved assessment of derivatives risk

    'Too big to fail' is emerging as a mainstream concern and with it come calls for the assessment of derivatives risk to be improved. For securitisation investors, better differentiation of risk in credit ratings is being put forward as one solution.

    In a hypothetical scenario, where the securitisation industry could start over with regards to ratings frameworks, ex-Moody's svp William .......

    News Analysis 10 April 2013

  • Bankruptcy declines supporting card ABS

    Ongoing declines in US personal bankruptcy filings remain positive for credit card ABS collateral, according to Fitch. Following two consecutive year-over-year declines for 2011 and 2012, bankruptcy filings dropped further in the first quarter, ending 13.2% lower versus last year.

    This figure is running well below the agency's initial 2013 expectations, which call for a for a 6%-7% full-year decline. .......

    News Round-up 9 April 2013

  • 'Negligible' set-off risk in Aussie SF

    Moody's reports that the level of set-off risk in Australian RMBS, ABS and covered bond programmes is negligible based on the inherent features of these transactions, as well as their structural mitigants.

    "For authorised deposit-taking institutions (ADI), set-off risks are mitigated through origination by a special purpose vehicle (SPV) or - in the case of equitable assignment programmes - through .......

    News Round-up 9 April 2013

  • Analytics platform unveiled

    Venn Partners has launched Venn Risk Analytics (VeRA), a platform designed to provide an independent, transparent and consistent approach to the analysis and valuation of a broad range of structured finance products. The team behind it consists of leading ABS buy-side, sell-side, rating agency and professional advisory experience, according to the firm.

    VeRA aims to help clients: demonstrate a high .......

    News Round-up 8 April 2013

  • Turkish quake risk on offer

    Bosphorus 1 Re series 2013-1, a parametric catastrophe bond, has hit the market. Sponsored by the Turkish Catastrophe Insurance Pool (TCIP), the notes are exposed to earthquakes affecting the Istanbul region between April 2013 and April 2016.

    S&P has assigned a double-B plus preliminary rating to the US dollar-denominated class A notes. The move marks the first time it has .......

    News Round-up 5 April 2013

  • Ratings tie-up announced

    Moody's credit ratings are now available to institutional investors via Morningstar UK's suite of data feed solutions on a requested, bespoke basis. Institutional clients will be required to hold a Moody's ratings license in order to access the data.

    .......

    News Round-up 4 April 2013

  • Student paper surfaces as ABS picks up

    Bank card bonds may have accounted for the bulk of secondary ABS supply on Monday, but a busier session yesterday saw more variety out for the bid. Much of the available paper comprised student loan assets, but SCI's PriceABS data also shows timeshare, container and whole-business ABS tranches circulating.

    "Secondary trading flows have increased from the prior session. .......

    Market Reports 3 April 2013

  • New fund formed

    Deer Park Road Corp has confirmed the launch of its new ABS fund (SCI 4 December 2012), dubbed Burgess Creek Fund. The new fund will focus on bonds with steady monthly cashflow and high-yield characteristics, along with capital appreciation potential. The firm says that a number of investors have already expressed a strong interest in the strategy.

    .......

    News Round-up 3 April 2013

  • Negative rating transitions 'less pervasive'

    Credit quality for global structured finance securities fell for the sixth consecutive year in 2012, again led by US RMBS, S&P reports. But downgrades were less pervasive and, with marginally improving global economic prospects and easing risks, the agency expects 2013 to mark a turning point for more stable credit performance.

    Going forward, S&P anticipates overall downgrade and default rates .......

    News Round-up 2 April 2013

  • FFELP SLABS criteria enhanced

    Fitch has published a new criteria report, which supersedes its previous criteria report on rating US FFELP student loan ABS. The major enhancements are a shortened duration of basis spike for monthly reset Libor notes under a AAA/AA scenario and updated basis stresses based on market data, as of December 2012.

    When developing basis stresses, Fitch takes into consideration the .......

    News Round-up 2 April 2013
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