ABS
-
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
-
Making hay
New equilibrium for Australian securitisation market
In contrast to Europe and the UK, the Australian securitisation market is continuing to see healthy issuance activity, despite the country dealing with the same inflation and rates pressures as the rest of the world. This Premium Content article investigates why it’s always sunny Down Under.
After an extraordinarily busy 2021 - with A$48.79bn publicly placed across 64 individual ......
News Analysis 14 July 2022Premium Content
-
Expiration concerns
Questions raised over the end of HAPS
The Greek HAPS programme is set to expire in October, having helped to considerably reduce the non-performing exposures of the country’s systemic banks. However, there is concern that its expiration may be premature, given the possibility of future asset deterioration on bank balance sheets.
“With the Russian invasion of Ukraine, high energy prices and possible energy bottlenecks, there is more .......
News Analysis 13 July 2022
-
Uncertainty prevails
Macroeconomic backdrop in focus
Thus far, 2022 has experienced some turbulent and choppy market conditions. Although poor performance has not yet affected the securitisation sector, the consensus – at least, in evidence during AFME and IMN’s Global ABS conference last month – is that uncertainty prevails and investor sentiment is predominantly focused on the macroeconomic backdrop.
During this period of market dislocation, .......
Talking Point 12 July 2022
-
-
Pre-summer comeback?
European ABS/MBS market update
With one deal pricing, the UK and European ABS/MBS markets reopened this week. As the summer break is fast approaching, issuers will have a short window to come to market.
This week, Premium Credit brought a fifth issue from their PCL master trust. The PCL Funding 2022-1 transaction - which priced yesterday - saw decent demand across the capital stack, .......
News 1 July 2022
-
Over the HIL?
Home improvements drive resurgence in HELOC RMBS
Total spending on home improvements and repairs in the US reached US$369bn in 2021, an increase of 9.4% year-over-year, according to Harvard University’s Joint Center for Housing Studies. Home improvement loans (HILs) have emerged as an alternative form of financing for these renovations, particularly for those who lack substantial equity in their homes, while HELOC securitisations are also seeing .......
News Analysis 30 June 2022
-
Better methods?
New definitions for green, social securitisations
ICMA has released new definitions for green and social securitisations, together with additional resources for climate transition finance under its update of the Green Bond Principles (GBP), Social Bond Principles (SBP), Sustainability Bond Guidelines (SBG) and Sustainability-Linked Bond Principles (SLBP). In a Q&A document published in conjunction with the updates, the association further clarifies that synthetic securitisations require additional .......
News 29 June 2022
-
Chain reaction
US container and railcar ABS examined
Global supply chain issues could continue to support US container and railcar ABS. However, as this Premium Content article shows, both markets are facing challenges on other fronts.
As with most other US esoteric ABS sectors, the container and railcar markets suffered when Covid-19 first hit. However, the more broadly driven - though pandemic exacerbated - global .......
News Analysis 27 June 2022
-
-
Suit filed over alleged CMBS fraud
Sector developments and company hires
Suit filed over alleged CMBS fraud
Market Moves 27 June 2022
Kasowitz Benson Torres, as counsel to investment vehicles associated with Carl Icahn, has filed a complaint in Nevada state court against Rialto Capital Advisors for breach of contract and fraud. The case is in connection with Rialto’s servicing of a CMBS trust (COMM 2012-CR4) secured by the Prizm Outlets mall in Primm, Nevada, which .......
-
Quantifi considers
Quantifi founder Q&A on 20th anniversary of firm
Quantifi, the provider of risk, analytics and trading solutions, recently celebrated its 20th anniversary. Founder and ceo Rohan Douglas started the firm from his attic in New Jersey in 2002, after prior senior credit derivatives research positions at Citigroup and Salomon.
Structured credit has been at the heart of what Quantifi does and SCI caught up with Rohan to talk about the changes .......
The Structured Credit Interview 24 June 2022
-
Changing the paradigm
John Pellew, principal, distribution and securitisation at A...
In isolation and in the absence of mitigating factors, non-performing loan and distressed assets are inherently high-risk investments, but that’s not the whole story.
While it’s true that we are dealing with defaulted loans and distressed assets, these assets are not sold in isolation or single units, and they are not sold because they have no value. They .......
Talking Point 23 June 2022
-
EIOPA consults on securitisation review
Sector developments and company hires
EIOPA has published a consultation paper in response to the European Commission’s call for advice (CfA) to the joint committee (JC) of the European Supervisory Authorities (ESAs) regarding a review of the securitisation prudential framework (SCI 28 October 2021). Under the CfA, the Commission sought the assistance of the JC to assess the recent performance of the rules on capital .......
Market Moves 16 June 2022
-
Opportunity knocks
Debut RPL ABS could be first of many
The first publicly rated European unsecured reperforming loan ABS hit the market in April. With Covid-induced moratoriums limiting the supply of non-performing loans, further such transactions could emerge, as debt purchasers with excess liquidity seek to deploy capital.
Dubbed Wolf Receivables Financing, the transaction represents Lowell Financial’s debut public securitisation and is also the first UK RPL ABS .......
News Analysis 8 June 2022
-
Open house
European CRE lending continues to diversify
A combination of growth in specialist lenders and the tightening of commercial real estate lending standards triggered by the Covid-19 pandemic represents an opportunity for European securitisation investors. In particular, CRE ABS deals offer a significant premium and momentum over more traditional CMBS transactions from well-established sponsors.
“Against a backdrop of record CMBS issuance, I feel that a .......
News Analysis 8 June 2022
-
Goodbye convention?
Demand for inclusive credit scoring intensifies
Institutional investors have joined the charge of securitisation professionals demanding more inclusive credit scoring methodologies, following the SFA’s call for the use of alternative credit scores amid enduring concerns over the wealth inequality gap in the US (SCI 6 April). A new study, commissioned by VantageScore Solutions and conducted by FTI Consulting, finds that institutional investors also desire more .......
News 6 June 2022
-
MidOcean bags PE bigwig
Sector developments and company hires
Erik Oken has joined MidOcean Partners as chairman of its private equity business, based in New York. He will work directly with the firm’s private equity investment team, with the aim of adding valuable senior insights and oversight to its thematic investment approach. Prior to joining MidOcean, Oken spent over 30 years at JPMorgan, most recently serving as global .......
Market Moves 1 June 2022
-
Crash landing
Aircraft ABS market papering over the cracks, say critics
There are gaping fault lines in the aircraft ABS market which the industry is doing little to solve, say some investors and structurers.
The Ukraine war has exposed serious imperfections but even more deep-seated problems in the key areas of valuation and transparency bedevil the sector, they add.
Aircraft securitization got under way about four years ago, but volume picked up sharply .......
News 1 June 2022
-
Fit for purpose?
ESAs urged to revive securitisation market
AFME and Paris Europlace have jointly called for the European Commission and co-legislators to step up efforts to finalise the European securitisation framework and make it “fit for purpose”. The move follows a High-Level Forum, which took place today (31 May), organised by the two associations to discuss the role that securitisation can play in helping to meet Europe’s .......
News 31 May 2022
-
Slow and steady
Dutch auto ABS to remain stable as car ownership declines
Adoption of Mobility as a Service (MaaS) in the Netherlands could lead to the end of individual car ownership for the country’s residents. At present, Dutch auto ABS only represents 1% of the total European auto ABS market, so the impact of this shift is likely to be marginal overall. Nevertheless, concentration risk and residual value risk remain important .......
News Analysis 27 May 2022