ABS

  • Downgraded ABCP remains investable

    Investors continue to buy the US and EMEA ABCP programmes downgraded from P-1 toP-2 in 2012, Moody's reports. For sponsors and sellers, many of the downgraded ABCP programmes remain attractive funding platforms, the agency says.

    Moody's notes that bank downgrades rather than asset deterioration drove the ABCP downgrades. "Although ABCP has traditionally been structured and marketed as a P-1 product, .......

    News Round-up 18 December 2012

  • Mexican equipment ABS critiqued

    Fitch says that several recent Mexican equipment lease ABS have credit risks that may not have been adequately addressed. The agency is therefore concerned about recent transactions coming to market that carry a triple-A national scale rating from other credit rating agencies.

    Fitch highlights three key credit concerns: small, lowly-rated sponsors securitising a large portion of their balance sheet; the .......

    News Round-up 18 December 2012

  • Stable outlook for ABCP

    The global ABCP market continues to prove resilient in the face of adversity, according to Fitch, having weathered an onslaught of market disruptions and regulatory challenges over the past few years. In the agency's view, at more than US$300bn, global ABCP outstandings remain a sizable force in the short-term capital markets and a valuable offering from both issuer and investor .......

    News Round-up 17 December 2012

  • Strengthening performance forecast for US SF

    Strengthening performance and issuance tailwinds in most US structured finance sectors are likely to push growth further in 2013, according to Fitch. However, one key area to watch in the coming year will be the potential drag created by fiscal cliff-related issues.

    "Securitisation re-established its importance to the global capital markets in 2012 and we expect this positive trajectory to .......

    News Round-up 14 December 2012

  • Slowing improvements drive credit card outlook

    Moody's has changed its outlook for US credit card ABS to stable from positive as collateral improvements slow.

    "Our outlook for the sector was positive in 2012 based on the expectation that collateral performance would see a significant decline in charge-offs, which occurred," says Moody's avp - analyst Gregory Gemson. "For 2013, we expect only slight improvements in charge-offs, which .......

    News Round-up 13 December 2012

  • Credit chief takes over ABS fund

    Simon Finch, credit cio at CQS, has replaced Alistair Lumsden as fund manager for the CQS ABS Fund. He will lead a team of 11 professionals in New York and London, where he is based. Finch has spent almost five years at CQS and was previously head of ABS at Abbey National.

    .......

    Job Swaps 12 December 2012

  • Lower quality, higher issuance for auto ABS

    The credit quality of US auto ABS will decline marginally in 2013, reflecting lenders' gradual return to higher but reasonable levels of risk taking, according to Moody's 2013 outlook for the sector. The agency also projects higher issuance, driven by investor demand to satisfy a need for short-term cash surrogate investment, as well as a need for yield from deeply .......

    News Round-up 12 December 2012

  • 2013 Euro ABS credit quality up, issuance down

    The credit quality of new European ABS and RMBS issuance in 2013 will be better than that of existing transactions, expects Moody's. However, deals will be smaller and that will affect issuance volume for the year ahead.

    The agency adds that the performance of existing transactions will be correlated to sovereign strength, with asset performance being stable in highly-rated countries .......

    News Round-up 10 December 2012

  • Timeshare delinquencies normalising

    US timeshare ABS delinquencies for 3Q12 were largely in line with those seen in the quarter before, says Fitch. Delinquency trends have largely normalised at their historical levels following dramatic increases in 2008 and 2009.

    The agency's latest timeshare index results show delinquencies for the quarter were 3.28%, down very slightly from 3.29% the quarter before. Delinquencies for the same .......

    News Round-up 10 December 2012

  • CRA 3 concerns highlighted

    A recent Reed Smith memo highlights three areas of concern for the securitisation industry with CRA 3 - rating agency rotation, public disclosure and civil liability (see also SCI 16 August). The European Council has published what may be the final form of the second amendment to the rating agency regulation, confirming that it will assent to it becoming effective .......

    News Round-up 6 December 2012

  • Increased clarity on LLD requirements

    The latest amendments to the ECB's collateral eligibility framework include information on loan level data (LLD) requirements for posted securitisations and the European DataWarehouse (ED). Data will have to be reported to the ED at least on a quarterly basis, no later than one month after the IPD. If data is not provided within one month of the IPD, repo .......

    News Round-up 6 December 2012

  • SCI conference line-up unveiled

    Final panellist line-ups have been announced for SCI's 6th Annual Pricing, Trading & Risk Management Seminar, which is taking place on 7 December in London. The event is being held at Reed Smith's offices at 20 Primrose Street, EC2A 2RS.

    This conference will focus on risk management and pricing/valuation issues, as well as trading and secondary market strategies. The programme .......

    News Round-up 5 December 2012

  • Second infrastructure debt fund launched

    AMP Capital has appointed Patrick Trears as infrastructure debt director in New York and launched a new debt fund in response to increased infrastructure investment demand. The new fund is AMP Capital Infrastructure Debt Fund II (IDF II).

    Trears joins from WestLB and has previously held structured and project finance positions at Hypo Real Estate, Citi Investment Bank and DEPFA .......

    Job Swaps 5 December 2012

  • Fund closed, new one prepped

    Deer Park Road Corp's flagship fund, STS Partners Fund, has closed to new investors. The fund - which focuses on deeply discounted short-duration, high cashflow MBS and other ABS securities - was launched in May 2008 and has since grown to more than US$600m AUM.

    Michael Craig-Scheckman, portfolio manager and owner of the firm, comments: "In order to preserve the .......

    Job Swaps 4 December 2012

  • Improvement seen in Japan consumer credit

    Moody's reports that the overall credit quality of all consumer asset classes in Japan's ABS market has improved. The agency expects the sector to remain stable, even in the face of severe unemployment and a decline in income levels.

    The Japanese ABS default rate is generally stable. The default rates of card cash advances and consumer finance loans, for instance, .......

    News Round-up 29 November 2012

  • Loan-level reporting timelines lengthened

    The ECB has adjusted its timeline for the start of loan-level data reporting requirements as part of the Eurosystem's collateral framework, to allow for the smooth implementation of what it deems as necessary amendments to Guideline ECB/2011/14 at the national level.

    For RMBS and SME transactions, the reporting requirements will now be mandatory as of 3 January 2013. For CMBS, .......

    News Round-up 27 November 2012

  • Disclosure principles published

    IOSCO has published its final 'Principles for Ongoing Disclosure for Asset Backed Securities' report, which is designed to provide guidance to securities regulators that are developing or reviewing their regulatory regimes for ongoing disclosure for ABS. The eleven principles were developed as a complement to IOSCO's 'Disclosure Principles for Public Offerings and Listings of Asset-Backed Securities', which was issued in .......

    News Round-up 27 November 2012

  • Continued resilience for Euro ABCP

    Moody's reports that the European ABCP market has demonstrated resilience, despite uncertainty surrounding regulatory changes and the economic environment. The agency notes that investors and sponsors have increased activity when possible.

    Negative rating trends meant that the downgrades envisaged for European ABCP sponsoring banks in 2011 materialised in 2012, thereby affecting the ratings of their sponsored conduits. As a result .......

    News Round-up 27 November 2012

  • European infrastructure debt group formed

    BlackRock has hired Philippe Benaroya, Chris Wrenn and Gilles Lengaigne to launch a European infrastructure debt investment unit in London. The trio previously worked together at Blackstone/GSO.

    The team will initially focus on the needs of financial investors such as insurance companies served by BlackRock's financial institutions group, helping them review opportunities to invest in investment grade infrastructure debt assets .......

    Job Swaps 26 November 2012

  • Paragon noteholder meetings due

    Noteholder meetings for PARGN 7, 8, 9 and 10 have been scheduled on 13 December, on 14 December for PARGN 11, 12 and 13, and on 18 December for PARGN 14, 15 and PPAF 3. The reason for the meetings is to discuss an extraordinary resolution, as suggested by Moody's, to enhance the structural features of the transactions.

    The proposed .......

    News Round-up 22 November 2012

  • MBIA-wrapped deals hit

    Moody's has downgraded the ratings of 179 classes of US structured finance securities wrapped by MBIA Insurance Corp, following the monoline's downgrade to Caa2 (SCI 20 November). Approximately US$9.33bn of securities - backed by first- or second-lien US residential mortgages, private student loans, RMBS, CMBS and ABS - are affected. The agency notes that its ratings on structured finance securities .......

    News Round-up 22 November 2012
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