ABS

  • ED private placement completed

    European DataWarehouse (ED) has successfully completed a private placement with 15 key investors, consisting largely of global banks and institutions. The placement was coordinated by Perella Weinberg Partners.

    Proceeds from the placement will be used to finalise the build-out of ED, as well as to provide the business with ongoing working capital. Completion of the platform, which will include an .......

    News Round-up 9 July 2012

  • Loan-level data implementation scheduled

    The ECB has released a timeframe for the implementation of loan-level data reporting for ABS. Provision of loan-by-loan information for RMBS will be mandatory as of 1 December 2012, with SME ABS and CMBS reporting to be implemented by 1 January 2013 and consumer finance, leasing and auto loan ABS reporting by 1 January 2014.

    Loan-level data is to be .......

    News Round-up 9 July 2012

  • Turkish transactions hit

    Moody's has downgraded the ratings of 31 tranches in four Turkish future receivables transactions, while upgrading eight tranches in one transaction and confirming the ratings of 18 tranches in another three. At the same time, the agency has taken action on the underlying ratings of 30 tranches wrapped by financial guarantors in seven transactions. The ratings of nine tranches remain .......

    News Round-up 6 July 2012

  • Modelling pro founds credit advisory

    Thomas Aubrey, who previously ran Fitch Solutions, has founded Credit Capital Advisory. The firm was established to act as a channel for credit professionals that believe a new approach to credit modelling is required if credit risk management is to be improved and capital is to be preserved.

    Prior to joining Fitch in 2007, Aubrey managed the Datastream, economics and .......

    Job Swaps 5 July 2012

  • Student loan deals downgraded

    The correction of an input error along with poor performance of private student loans has prompted Moody's to downgrade 26 classes of bonds issued by Vermont Student Assistance Corporation. The underlying collateral consists of student loans originated under the Federal Family Education Loan Program (FFELP), which are guaranteed by the US government for a minimum of 97% of defaulted principal .......

    News Round-up 3 July 2012

  • Spanish deals hit

    Moody's has downgraded to A3(sf) the ratings of 583 securities across 328 structured finance transactions, including ABS, RMBS and CDOs. Moody's has also placed or maintained on review for downgrade the ratings of most Spanish ABS, RMBS and CDOs.

    There are three drivers for themost recent downgrades. The first relates to Moody's decision on 26 June to lower the Spanish country .......

    News Round-up 3 July 2012

  • RFC issued on two rating proposals

    Moody's is seeking market participants' comments on two proposals affecting how it assesses structured finance transactions globally. The first proposal supplements Moody's existing framework for de-linking swap counterparty risks by outlining an approach to assessing credit linkage to swap counterparties. The second proposal provides specific guidelines on how the choice of banks and eligible investment for the temporary use of .......

    News Round-up 3 July 2012

  • New deal boosts Russian ABS market

    In what is seen as a breakthrough for the Russian securitisation market, ZAO Raiffeisen Bank - the Russian subsidiary of Raiffeisen Bank International (RBI) - has completed a Diversified Payment Rights (DPR) securitisation secured by pledges of ZAO Raiffeisenbank's current and future US dollar and euro receivables.

    The European Bank for Reconstruction and Development (EBRD) provided US$50m of funding while .......

    News Round-up 3 July 2012

  • CMA acquired

    S&P Capital IQ has acquired Credit Market Analysis (CMA) from CME Group, as part of the agreement to establish the S&P Dow Jones Indices joint venture (SCI 2 July). The purchase of CMA - along with the recently announced acquisitions of R2 Financial Technologies (SCI 13 February) and QuantHouse - provides S&P Capital IQ with the components necessary to offer .......

    Job Swaps 3 July 2012

  • Equipment criteria unveiled

    Kroll Bond Rating Agency (KBRA) has released its methodology for rating US equipment lease and loan ABS. The rating agency's analytic approach for rating these transactions incorporates the originator and servicer's operational and financial strength, the quality and expected performance of the underlying assets, and an analysis of the transaction's structure.

    KBRA's rating assignments on equipment leasing ABS are based .......

    News Round-up 2 July 2012

  • Investment pro appointed

    Stefano Loreti has joined Haymarket Financial as a partner and head of structured credit investing. He previously spent six years as senior portfolio manager at Cairn Capital in London, responsible for the management of over US$20bn in global ABS and CDO securities. Loreti has more than 15 years of experience in managing and analysing a wide range of structured credit .......

    Job Swaps 2 July 2012

  • SF trading head named

    Laila Kollmorgen has joined Raymond James Financial as head of European structured finance trading. She was previously md and head of European ABS/CDO trading at Cohen & Company and head of secondary ABS trading at BNP Paribas.

    .......

    Job Swaps 29 June 2012

  • Subprime auto ABS overheating?

    Moody's suggests that the US subprime auto lending market is beginning to resemble its condition in the 1990s, when overheated competition led to poor underwriting that drove up securitisation losses. As in that earlier period, capital is pouring into the sector and the issuance of subprime ABS is booming, the agency observes.

    "It is too early to predict whether today's .......

    News Round-up 29 June 2012

  • Prime auto losses inch up

    Following strong performance in the spring, US prime auto loan ABS losses crept up slightly last month, according to Fitch's latest index results for the sector. However, the agency reports that auto ABS performance remains on track with annualised net losses (ANL) standing at 0.18% in May, 61% below 2011's figure.

    Prime ANL moved up by 1bp month-over-month (MOM) and .......

    News Round-up 29 June 2012

  • SF natural hedging examined

    The number of European structured finance deals that use swaps to hedge interest rate mismatches may decrease as hedging costs rise and the number of eligible counterparties drops, Fitch suggests. This reduces the counterparty risk but can place more emphasis on credit enhancement if the resulting interest rate risk is not adequately mitigated, for example through natural hedges.

    Various techniques .......

    News Round-up 27 June 2012

  • Bank downgrades hit SF, ABCP

    Moody's has downgraded a number of structured finance notes directly exposed to the declining credit quality of certain US and European firms with global capital market operations that the agency downgraded on 21 June. At the same time, the ratings on approximately US$37bn of ABCP have been impacted.

    The rating actions affect 110 tranches and 103 structured notes in the .......

    News Round-up 26 June 2012

  • ECB repo eligibility broadened

    The ECB is set to reduce the rating threshold and amend the eligibility requirements for certain ABS, thereby broadening the scope of the measures to increase collateral availability that were introduced on 8 December 2011.

    Auto loan, leasing and consumer finance ABS and CMBS that have a second-best rating of at least single-A at issuance and at all times subsequently .......

    News Round-up 26 June 2012

  • Card charge-off spike reverses

    US securitised credit card charge-offs declined by 31bp in May to 4.9% from 5.21% in April, according to Moody's Credit Card Indices. The drop more than reversed an anomalous one-month increase in April (SCI 22 May), says Moody's.

    The May decline in the charge-off rate index is consistent with Moody's forecast that the index will continue to fall lower in .......

    News Round-up 25 June 2012

  • Credit cards boosting US volumes

    Year-to-date US consumer ABS volume stands at US$83.5bn, approximately 62% ahead of last year's pace of issuance. The recent flurry of credit card, student loan and equipment transactions (see SCI's ABS database) has shifted the composition of the market: the auto sector's share, for example, fell to 48.4% this month - the first time it has fallen below 50% since .......

    News Round-up 22 June 2012

  • Picking sides

    Challenges and opportunities in search for relative value

    Ongoing speculation about the future of Greece has dominated the market's attention, but it is not the only concern weighing on participants' minds. Nevertheless, European ABS still offers great value for those who know where to look.

    "We are at a place where trading is gradually reduced. Secondary activity is down in Europe and the US as everybody watches Greece. .......

    News Analysis 22 June 2012

  • Mixed blessings

    Action needed to attract European investors

    Some ABS traders in Europe are expecting to use their balance sheets more over the coming months to support clients. While the rise of BWICs is aiding execution for sellers, more needs to be done to attract a broader investor base to the market.

    Increasingly heavy use of BWICs has been a mixed blessing for European ABS traders. While the .......

    News Analysis 22 June 2012
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