ABS

  • Timeshare ABS criteria published

    Kroll Bond Rating Agency (KBRA) has released its methodology for rating US timeshare ABS transactions. The methodology incorporates an analysis of the quality and expected performance of the underlying collateral, the originator and servicer's business model and operational strength, and the transaction terms.

    KBRA's approach emphasises a focus on prevailing industry and credit trends, the integration of originator and servicer .......

    News Round-up 11 October 2012

  • APAC ratings remain stable

    Fitch reports that ratings of structured finance (SF) tranches in Asia Pacific were generally stable in 3Q12, with negative rating actions confined to Japan. A total of eight tranches were upgraded in the region during the quarter.

    "The predominance of affirmations in 3Q12 again attests to strong asset performance, particularly in Australia and South Korea, across multiple asset classes," comments .......

    News Round-up 11 October 2012

  • Credit opportunities fund minted

    BlueMountain Capital Management has closed the BlueMountain Credit Opportunities Master Fund I, its most recent and largest longer-dated credit fund, with over US$1.4bn in capital commitments. Credit Opportunities I will invest opportunistically to capture the large premium available in more complex and less liquid credit instruments.

    The fund will focus on corporate structured credit, such as CLOs and synthetic CDOs, .......

    News Round-up 11 October 2012

  • Upping sticks

    Agency MBS crowding to boost esoteric ABS

    The New York Fed's announcement last month that Operation Twist will target solely agency MBS took many by surprise (SCI 14 September). While the ramifications for the RMBS market are fairly obvious, the knock-on effects for less frequented asset classes are just as significant.

    Structured credit consultant Dan Castro says the Fed's expected agency MBS purchases will force investors to .......

    News Analysis 11 October 2012

  • Aviation, SF partner added

    Stephenson Harwood has appointed Saugata Mukherjee as a partner in its aviation and structured finance practice in Singapore. He will report to Paul Ng, global head of aviation.

    Mukherjee previously worked at Freshfields Bruckhaus Deringer in London in the structured and asset finance group and has also worked at Goldman Sachs. He specialises in aircraft financing structures, derivatives and structured .......

    Job Swaps 9 October 2012

  • Private SLABS performance to improve

    The default rate of securitised private student loans will remain high for the remainder of 2012, but will continue to improve slowly on a year-to-year basis, according to Moody's.

    The agency's Private Student Loan Indices show the default rate index ending 2Q12 at 4.2%, down from 4.8% the previous quarter and 4.9% a year ago. This marks the first sizeable .......

    News Round-up 5 October 2012

  • BoS confirmed as issuer account bank

    Fitch says that Spanish structured finance transactions utilising the Bank of Spain as the issuer account bank are able to support ratings up to the existing sovereign IDR-linked cap of double-A minus. The agency has been notified that the issuer account bank role has been migrated to BoS for IM FTGENCAT Sabadell 2, IM Banco Popular FTPYME 1, IM Grupo .......

    News Round-up 4 October 2012

  • Abundant auto activity in ABS

    A flurry of auto paper supported elevated ABS secondary supply yesterday. SCI's PriceABS BWIC data shows 16 auto ABS tranches that were covered in the session.

    The largest slice of any tranche to be covered was a US$66.56m piece of ALLYA 2011-1 A4, which was covered at 12bp over. A US$17.34m piece of ALLYA 2009-A A4 was also .......

    Market Reports 4 October 2012

  • Credit card paper in demand

    Secondary US ABS market activity picked up yesterday from the previous session. Of note, a handful of senior credit card bonds were covered in size at par or over.

    The largest slugs of paper to circulate were legacy Bank of America Credit Card Trust issues. SCI's PriceABS BWIC data shows that US$100m slices each of BACCT 2006-A14 A14 .......

    Market Reports 28 September 2012

  • Canadian card ABS gains traction

    Year-to-date new issue activity from Canadian-domiciled credit card ABS sponsors has reached C$7.1bn, a level not observed since 2008, according to S&P. Cross-border transactions have accounted for approximately 60% of total new issuance in 2012 - a trend that it is expected to continue.

    "In our opinion, strong US investor interest in Canadian receivables, coupled with a relative funding cost .......

    News Round-up 27 September 2012

  • Unicredit tender results in

    Unicredit has published the results for all bonds subject to its recent tender (SCI 12 September), apart from four Cordusio tranches - CORDR 1 C, 2 C, 4 C and 4 D - whose offer deadline has been extended to today. The bank accepted €571.96m nominal value of notes out of the €985.75m offered via an unmodified Dutch auction. Average .......

    News Round-up 27 September 2012

  • ABS syndicate strengthened

    Tristan Cheesman has joined JPMorgan's European securitised product group syndicate in London. He moves from Commerzbank and reports to James Crispin, head of ABS syndication at JPMorgan.

    .......

    Job Swaps 25 September 2012

  • Law firm poaches six

    K&L Gates has expanded its finance practice with the addition of four new partners in the London office. The law firm has also recruited two partners to its real estate investment, development and finance practice in the Charlotte office.

    The London hires comprise Matthew Duncan, Theresa Kradjian and Paul Matthews - who join from Sidley Austin - as well as .......

    Job Swaps 24 September 2012

  • Charge-offs continue to decline

    Securitised credit card charge-offs, as measured by Moody's Credit Card Index charge-off rate, decreased to 4.19% in August from 4.56% in July. Five of the six largest trusts posted declines, led by a 97bp improvement in the Chase trust's charge-off rate, largely attributable to a normalisation from its recent change in charge-off recognition policy. American Express was the only one .......

    News Round-up 24 September 2012

  • Level playing field sought

    Calls for even-handed regulatory treatment of European ABS and covered bonds have re-emerged (see also SCI 6 October 2011). Solvency II capital requirements, in particular, are seen to be punitive for ABS instruments.

    "Solvency II rules, as they stand, don't make sense for UK and Dutch triple-A rated RMBS," confirms Andrew Lennox, lead portfolio manager for ABS at ECM. "Rating .......

    News 21 September 2012

  • FFELP SLABS stress tested

    US FFELP student loan ABS ratings would remain largely intact against differing levels of stress, according to recent stress tests conducted by Fitch. The agency subjected its existing US FFELP SLABS portfolio to both moderate and severe scenarios to determine the impact on existing ratings.

    While sovereign risk is the key rating driver for FFELP student loan ABS transactions, both .......

    News Round-up 20 September 2012

  • Euro auto ABS circulating

    European secondary ABS supply was dominated by auto paper yesterday. A rally in the sector saw many names being bid up over par.

    One bond that appears often in SCI's PriceABS BWIC archive - VCL 13 A - was covered at 100.38 during the session, having previously been covered at 100.385, 100.27 and 100.255 on 15 August, 13 .......

    Market Reports 19 September 2012

  • Volume forecasts revised higher

    Structured products strategists at Wells Fargo predict that total US consumer ABS issuance will reach US$170bn for full-year 2012 - approximately a 60% increase over 2011. They expect about US$20bn of new consumer ABS in September alone, assuming the usual seasonal patterns hold and there are no macroeconomic or political disruptions, with the issuance pace remaining brisk in October and .......

    News 18 September 2012

  • Auto ABS performance stabilising

    US auto ABS performance stabilised in August, with losses improving after the previous month's dip, according to Fitch's latest index results for the sector. Prime annualised net losses (ANL) dropped by 24% in August to 0.25% from 0.33% the previous month, a 47% improvement year-over-year (YOY).

    Cumulative net losses (CNL) declined by 11% month-over-month (MOM) to 0.32% from 0.36%. However, .......

    News Round-up 18 September 2012

  • IFM makes Euro expansion

    Industry Funds Management (IFM) has appointed David Cooper as investment director for its debt investments group. He will be based in London and lead IFM's infrastructure debt expansion into the UK and Europe.

    Cooper joins from Barclays, where he was head of the infrastructure and structured project finance team. He has also worked at RBS and HBOS.

    .......

    Job Swaps 18 September 2012

  • Trade receivables programme minted

    Finacity Corporation and ING Belgium have facilitated the successful closing of a pan-European trade receivables securitisation for Sonae Indústria SGPS. The securitisation programme will provide Sonae Indústria with cash proceeds of up to €100m through the on-going purchase of receivables from its European operations.

    Finacity and ING Belgium acted jointly to set the transaction up. ING Belgium structured and funded .......

    News Round-up 17 September 2012
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