ABS

  • SME funding partnership inked

    Sector developments and company hires

    SME funding partnership inked
    SME Capital and JPMorgan have agreed a new funding partnership dedicated to supporting UK SMEs. The collaboration entails JPMorgan extending a significant line of committed capital for SME cashflow lending over the next three years.

    The partnership forms the second phase in the development of SME Capital’s warehousing programme - the first phase being the .......

    Market Moves 2 September 2022

  • Active autumn?

    European ABS/MBS market update

    The European and UK ABS/MBS primary market looks set for an active autumn after a lacklustre August. The visible pipeline is beginning to build and a heavy potential refinancing calendar stretches over the next few months.

    Finnish auto ABS Tommi 3 was announced last week and is slated to price next week. The deal's top two tranches are .......

    News 31 August 2022

  • S&P Global bolsters private markets offering

    Sector developments and company hires

    S&P Global has announced the acquisition of the private markets data solutions provider, Private Market Connect (PMC). The acquisition will integrate the platform into the firm’s market intelligence division and will increase the breadth and depth of its data solutions for Limited Partner and General Partner customers. PMC currently tracks over 15,000 unique funds and US$1.2trn in private markets commitments. .......

    Market Moves 31 August 2022

  • FFELP forgiveness miss

    Student debt relief impact 'unclear'

    The Biden Administration last week unveiled its Student Debt Relief Plan, which will cancel up to US$10,000 of federal student loans for borrowers with individual incomes of less than US$125,000 (or US$250,000 for households) and up to US$20,000 for borrowers that received a Pell Grant. While the move is not expected to have a meaningful direct effect on private .......

    News 31 August 2022

  • The HEAT is on

    Subprime auto ABS to feel impact of court ruling

    The subprime auto loan ABS market is likely to the first in which the full ramifications of April’s landmark HEAT ruling are felt, say legal experts.

    The HEAT verdict means that plaintiffs are now obliged to uncover and specify all the problematic loans before the case begins rather than, as hitherto, as the case progressed. This will entail considerably greater expenditure .......

    News 30 August 2022

  • Not fit for purpose

    EIOPA conclusions 'conceptually flawed'

    Following its consultation paper in response to the European Commission’s call for advice on the review of the securitisation prudential framework under Solvency 2 (SCI 16 June), EIOPA has affirmed that it “considers that the current framework is fit for purpose.” However, this conclusion has failed to convince the securitisation industry of its validity.

    EIOPA’s broad assessment .......

    News Analysis 22 August 2022

  • ADB co-financing agreement inked

    Sector developments and company hires

    ADB co-financing agreement inked
    The Asian Development Bank (ADB) has signed an agreement with five global insurers that will mobilise up to US$1bn of co-financing capacity to support lending to financial institutions in Asia and the Pacific. The Master Framework Program for Financial Institutions will allow ADB to increase its lending to both commercial banks and non-bank financial institutions in .......

    Market Moves 19 August 2022

  • Tangible benefits

    Ali Ben Lmadani, founder and ceo of ABL Aviation, argues tha...

    Central banks across the globe are tightening monetary policy to curb the highest inflation rate in more than four decades. It’s been a rough ride for consumers – food and living costs have soared, as well as the price of energy. In late July, the US Federal Reserve – which, due to its influence, is a benchmark for the .......

    Talking Point 19 August 2022

  • Proportional representation

    Scaling factor suggested for capital charges

    A new Risk Control paper puts forward a scaling factor as a more risk-sensitive method of calibrating capital formulae under SEC-SA. The objective is to encourage European authorities to rectify the incoherence in securitisation prudential rules that exists between actual risk and capital charges at the mezzanine level, and make the senior tranche floor proportional to pool risk weights .......

    News Analysis 19 August 2022

  • MBS social index proposed

    Sector developments and company hires

    Fannie Mae has published a proposed methodology for single-family social disclosure, which aims to provide MBS investors with insights into socially-oriented lending while preserving the confidentiality of borrowers. At the core of the methodology are three key outcomes that the GSE is seeking to achieve with its Single-Family Social Index: prioritise borrowers; allow investors to identify pools with high concentrations of .......

    Market Moves 18 August 2022

  • Unexpected update

    Recognition of EU STS securitisations to be extended

    Securitisation regulation in the UK has received a surprise amendment, following the publication last month of the new Financial Services and Markets Bill. The Bill is set to provide investors in the UK with access to a larger pool of STS securitisations with the introduction of a new STS equivalence regime for non-UK transactions.

    More broadly, the Bill .......

    News Analysis 17 August 2022

  • Symbiotic relationship

    'Recharacterisation' underway for European ABS

    The paucity of European publicly placed securitisations in recent months, against a backdrop of challenging conditions, is seen as a symptom of a market that is overregulated and has too few participants. Against this backdrop, a seemingly symbiotic relationship between the public and private securitisation markets is emerging.

    “The market for publicly issued securitisation bonds is too illiquid .......

    News Analysis 12 August 2022

  • DLT powers bank subordinated debt deal

    Sector developments and company hires

    DLT powers bank subordinated debt deal
    Blockchain-powered fixed income platform Brightvine and Angel Oak Capital Advisors have launched what is believed to be the first-ever bank subordinated debt issuance leveraging blockchain technology. A US$147.55m securitisation backed by subordinated debt issued by community banks across the US, BFNS 2022-1 leverages Brightvine Portal, a secure management platform for conducting primary offerings of .......

    Market Moves 12 August 2022

  • On the cards

    Credit card ABS strength likely to attenuate into 2023

    The resilience of the credit card ABS market in the face of rampant inflation has surprised analysts, but delinquency rates will increase from the beginning of next year, they say.

    Covid-era stimulus payments and delinquency moratoriums by banks, plus lack of spending opportunities, have protected consumers from surging prices so far, but these factors will be of diminishing importance by the end .......

    News Analysis 28 July 2022

  • Trade finance tokens unveiled

    Sector developments and company hires

    Trade finance tokens unveiled
    Tradeteq has selected XinFin’s XDC Network to launch TRADA tokens, believed to be the first-ever fully regulated trade finance-backed fungible security tokens. The move is expected to deliver liquidity to the trade finance sector by securitising a traditionally illiquid asset class on the XDC Network public blockchain and extending access to the sector to both retail .......

    Market Moves 26 July 2022

  • Golden opportunity?

    Basel 4 raises Japanese SRT prospects

    Japanese banks have historically been well-capitalised, but implementation of the Basel output floors could change this. Against this backdrop, this Premium Content article investigates the prospects for capital relief trade issuance in the jurisdiction.

    Japanese banks are expected to boost their issuance of significant risk transfer transactions as the implementation of the Basel output floors draws near. ......

    News Analysis 22 July 2022

    Premium Content

  • Changing perceptions

    Need for liquidity supporting TRS growth

    Rapid growth in trade receivables securitisation (TRS) volumes has been accompanied by an apparent change in perception of the asset class, from being overly complex to now being widely considered as an important funding instrument for the real economy. Through the pandemic - and ever since - TRS has been embraced as a flexible solution for corporates seeking to .......

    News Analysis 21 July 2022

  • Relative rebound

    European ABS/MBS market update

    The penultimate week of July has seen activity rebound in the UK and European ABS/MBS primary markets. Although no widely distributed deals have yet been seen, issuance flows have been encouraging in comparison to recent weeks.

    Facing continuing broader macroeconomic concerns exacerbated by political turmoil in Italy, issuers sought to get ahead of today’s long-awaited ECB rate rise by picking .......

    News 21 July 2022

  • 'Penalising' RBC proposal criticised

    Sector developments and company hires

    ‘Penalising’ RBC proposal criticised
    The LSTA has submitted a comment letter to the NAIC expressing its belief that the NAIC’s risk-based capital (RBC) proposal could penalise insurance company investments in CLOs and consequently impact the CLO and loan markets. The proposal would change the RBC framework such that capital requirements for purchasing all tranches of a CLO match the capital .......

    Market Moves 21 July 2022

  • Looking for labels

    Second-party opinions gaining traction

    A total of 17 securitisations with second-party opinion (SPO) labels have been issued in Europe since 2016. With ESG factors playing an increasingly important role in investment decisions, tiering could emerge between transactions based on whether they have an SPO or not.

    “There appears to be a trend: if you are an arranger or issuer, you check if you can .......

    News 15 July 2022

  • Prepayments on the cards

    FFELP loan cancellation widely anticipated

    President Biden is widely expected to introduce a large-scale student loan forgiveness programme ahead of the US mid-term elections in November. One of two administrative mechanisms is likely to be adopted to implement the programme, each of which would have a significant impact on the over US$90bn FFELP student loan ABS market.

    “US consumers are facing a slippery .......

    News Analysis 14 July 2022
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