ABS

  • 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

  • UK credit card ABS rebounds

    S&P has published its 2Q12 UK credit card ABS index report, which shows that performance has remained stable despite tough economic conditions. Charge-offs and delinquencies both decreased quarter-on-quarter and new issuance increased.

    "The stable credit performance of UK credit card ABS master trusts despite persistently high unemployment rates reflects our view that the volume of delinquencies is more sensitive to absolute .......

    News Round-up 14 September 2012

  • Esoteric ABS capital treatment critiqued

    Certain non-traditional ABS sectors are vulnerable to spiking to 100% risk-based capital requirements under the new US bank trading book rules, owing to their non-conformity with classic consumer ABS structures, performance measurement and regulatory definitions. Citi securitisation strategists argue that stranded assets, dealer floorplan, rental car, franchise, aircraft and container ABS represent secured corporate credit risk and so the associated .......

    News 13 September 2012

  • Euro reporting improving

    Better reporting in EMEA structured finance transactions has seen nearly one-third of deals merit a higher issuer report grade (IRG) since Fitch re-launched IRGs last year (SCI 15 November). The agency notes that while there is still room for improvement, with just 12.4% of transactions receiving the highest 4- or 5-star grades, discussions with report providers that followed the re-launch .......

    News Round-up 13 September 2012

  • Unicredit tender announced

    Unicredit has announced a tender offer for 22 Cordusio RMBS, F-E Mortgages, Capital Mortgages, Locat and F-E Gold bonds. The liability management exercise will be undertaken via an unmodified Dutch auction. The offer period will expire on 24 September, with settlement expected on 27 September.

    .......

    News Round-up 12 September 2012

  • Portuguese country ceiling lowered

    Moody's has downgraded to Baa3 the ratings of 47 securities across 32 Portuguese ABS and RMBS. The agency has also placed on review for downgrade the ratings of a further 90 Portuguese ABS and RMBS securities.

    The downgrades follow Moody's decision to lower the Portuguese country ceiling from Baa1 to Baa3 on 5 September. The main driver for the rating .......

    News Round-up 12 September 2012

  • Stable outlook for South Korean SF

    South Korean Fitch-rated structured finance transactions are well-placed to withstand the country's slowing economy and its high household debt, the agency says. Its outlook for all transactions is stable and all ratings have been affirmed so far this year.

    Fitch says deterioration in the performance of the transactions' underlying assets, stemming from rising household debt, is unlikely to be material. .......

    News Round-up 12 September 2012

  • Card delinquencies hit all-time low

    Delinquencies for US credit card ABS have plunged to an all-time low, according to Fitch's latest index results for the sector. Delinquencies are now down by 25.74% year-over-year and are also well below the long-term average of 3.02%.

    Fitch's 60-day delinquency index reached 1.76% during August. The 6bp decline brought delinquencies down to their lowest level since the agency launched .......

    News Round-up 11 September 2012

  • Timeshare delinquencies stabilising

    Consistent with seasonal trends, US timeshare ABS delinquencies dropped in the second quarter, according to the latest timeshare index results from Fitch. Total delinquencies for 2Q12 were 3.29%, down from 3.58% in 1Q12.

    Year-over-year total delinquencies remain consistent with the 2Q11 level of 3.28%. Delinquencies appear to be normalising at their historical levels, Fitch notes, following the dramatic increases that .......

    News Round-up 11 September 2012

  • New issues rule ABS bid-lists

    US ABS secondary market volumes have fallen off from the start of the week, with only a few lists being circulated yesterday. Auto continues to be the most active sector (SCI 31 August), accounting for more than one-third of supply during the session. Interactive Data notes that new issue paper was mostly out for the bid.

    SCI's PriceABS BWIC data .......

    Market Reports 7 September 2012

  • Drilling rig risks outlined

    Fitch has published a report outlining the risks and mitigants associated with drilling rig financing transactions. The move comes as new vessels arrive in Brazilian waters.

    "With the discoveries of presalt layer reserves in offshore Brazilian waters and Petrobras's US$236.5bn four-year investment plan, there has been increased demand for drilling rig assets," says Bernardo Costa, a senior director in Fitch's .......

    News Round-up 7 September 2012

  • China's pilot programme progressing

    Moody's reports that China's regulators are making steady progress towards establishing a securitisation market in the country. However, as has been the case with other jurisdictions, the process will be long and involved.

    "As in other countries, the enactment of a securitisation law in China - which is essential for the market - is a time-consuming and complex process. It .......

    News Round-up 6 September 2012

  • Investor relations head joins

    SCIO Capital has added Joern Czech as head of business development and investor relations. He was most recently at Goldman Sachs, where he served as executive director for structured solutions.

    Czech spent 10 years in Deutsche Bank's global markets division before he joined Goldman Sachs. He was responsible for Deutsche Bank's investment solutions to institutional real money investors. He began .......

    Job Swaps 6 September 2012

  • Bridging the debt gap

    Jonathan Rochford, portfolio manager at Narrow Road Capital, answers SCI's questions

    Q: How is Narrow Road Capital involved in structured credit in Australia?
    A:     Narrow Road Capital is an Australian high yield and distressed debt asset management business, targeting investments primarily in loans, bonds, structured credit and listed notes. Structured credit is a key part of what we invest in, with the deal flow more regular and .......

    The Structured Credit Interview 4 September 2012

  • Synthetic infrastructure trade completed

    NordLB has placed the mezzanine tranche of a risk transfer trade, dubbed Blue Rock, with a single institutional investor. The transaction provides credit protection on a £307m portfolio of 20 high grade UK infrastructure loans.

    "With Blue Rock, we are responding to the growing demand among institutional investors for asset-backed capital market products," comments Hinrich Holm, NordLB managing board member .......

    News Round-up 3 September 2012

  • Auto paper fuels secondary activity

    European auto ABS proved the flavour of the day yesterday as a succession of bonds achieved covers over 100 in the secondary market, encouraging US traders to also start showing auto paper. SCI's PriceABS BWIC data captured a mix of new and familiar names for the session, with some interesting patterns emerging.

    Market sources indicate that the activity .......

    Market Reports 31 August 2012

  • FATCA implications examined

    The forthcoming US Foreign Account Tax Compliance Act (FATCA) could have wide-ranging implications for global structured finance transactions, Fitch says. In particular, the FATCA status of SPVs and counterparties handling payments will be a key issue. Under current plans, withholding tax would apply on relevant interest payments from January 2014 and relevant principal payments from January 2015.

    The Act is .......

    News Round-up 31 August 2012

  • Indian CV ABS stress tested

    Fitch says that Indian commercial vehicle (CV) loan ABS are resilient, even under a severe slowdown in the Indian economy. The agency has subjected its ratings on CV loan ABS to moderate and severe stress to assess their impact on asset performance.

    The stress factors against which the ratings were analysed are a slow-down in industrial production, which leads to .......

    News Round-up 29 August 2012

  • SLABS issuance defies market changes

    US student loan ABS issuance has increased this year and ratings performance has remained stable, despite significant changes in the sector, according to S&P.

    The changes have centred on shifts in how government-guaranteed student loans are funded, which has put a sizable dent in government-backed student loan ABS issuance. Despite this setback, Sallie Mae, a handful of municipal issuers and .......

    News Round-up 28 August 2012

  • ABS bucks quiet secondary trend

    After a run of elevated supply, secondary trading in the US tailed off at the end of last week and remained comparatively quiet on Monday. RMBS volumes, in particular, are muted as investors digest remittance reports. Activity in the ABS sector has ticked up, however.

    SCI's PriceABS BWIC data shows fewer RMBS line items than usual for yesterday's .......

    Market Reports 28 August 2012

  • SLABS paper trades in secondary

    Secondary market supply remained strongly elevated yesterday, with 480 line items represented in SCI's PriceABS BWIC data. Student loan ABS paper, in particular, was circulating and attracting interest at tight levels.

    The SLMA 2011-A A2 tranche was covered in the N+150/160 range, coming tight from its talk earlier in the day of N+170/180. Fellow Sallie Mae private student .......

    Market Reports 24 August 2012
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