ABS

  • Mixed performance

    Semi-annual NPL securitisation update debuts

    Moody’s has published the first in a series of semi-annual updates on European non-performing loan securitisations, which shows that six out of eight Italian NPL securitisations it has rated that have performance history are exhibiting cumulative gross collections around or below those anticipated by their business plan, while two exceed it. Cumulative gross collections for the Evora Portuguese NPL .......

    News 14 March 2019

  • Formative stages

    Greek NPL momentum continues

    Of the investors surveyed in Ashurst’s latest global non-performing loan report, 39% state that they have already invested in Greece - a higher percentage than anticipated, given that the Greek market remains in its formative stages. This figure may be indicative of investors having acquired assets in Greece under single-name transactions or other smaller private transactions. Nonetheless, appetite remains .......

    News 13 March 2019

  • Auto ABS looks set to receive first STS verification

    Sector developments and company hires

    Auto ABS looks set to receive first STS verification

    The first European ABS that looks set to receive STS verification, by True Sale International’s STS Verification International, is being marketed by Volkswagen. The €719.9m auto lease ABS transaction is dubbed VCL Multi-Compartment, Compartment VCL 28 and is provisionally rated by Moody’s and Fitch as Aaa/AAA on the €705.7m class A notes .......

    Market Moves 13 March 2019

  • UMBS trades to be accepted

    Sector developments and company hires

    UMBS trades to be accepted

    In support of the Single Security Initiative, Fannie Mae will begin accepting forward Uniform Mortgage-Backed Security trades with a trade date on or after 12 March, 2019 and settlement dates on or after 3 June, 2019. The announcement follows confirmation on 7 March, 2019 from SIFMA that their To-Be-Announced (TBA) Guidelines Advisory Council approved revisions .......

    Market Moves 12 March 2019

  • Bright spot

    European ABS market update

    De Lage Landen’s newly mandated UK equipment lease ABS represents a bright spot in an otherwise “dull” European securitisation market. Both primary and secondary activity appear muted so far this week.

    Investor meetings for the £410m DLL UK Equipment Finance 2019-1 were set for yesterday and today. “The DLL deal is a bit different and brings some much-needed .......

    Market Reports 12 March 2019

  • R-PACE rulemaking proposals outlined

    Sector developments and company hires

    Credit line secured

    Foundation Home Loans has entered into a new £350m warehouse credit line with National Australia Bank to support the origination of new mortgages. The lender has also extended an existing warehouse, funded by Natixis and SMBC, by £100m.

    ILS

    Descartes Underwriting has hired Edern Le Roux as head of ILS and cat modelling. .......

    Market Moves 11 March 2019

  • Servicing boost

    Intrum augments Greek presence

    Intrum is planning a purchase of a Greek debt servicing platform, which will act as a springboard for further non-performing loan transactions. However, it’s unclear whether the decision involves acquisition of a licensed debt servicing platform or setting one up from scratch.

    “It could be either. If we can find the right platform to purchase that would be .......

    News 8 March 2019

  • Merger opposed

    Company hires and sector developments

    Astra case development

    Judge Jennifer Frisch of the Minnesota District Court, Second Judicial District, has denied Goldman Sachs’ motion to dismiss the claims asserted against it by Kasowitz Benson Torres, on behalf of its client, Astra Asset Management, seeking termination of the Abacus 2006-10 synthetic CDO. The case is proceeding with discovery, with trial scheduled for October .......

    Market Moves 8 March 2019

  • Isolation issues

    DLT legal, operational challenges highlighted

    A number of legal and operational issues still need to be resolved before blockchain securitisations are likely to be publicly rated. How distributed ledger technology will isolate securitised assets is one major challenge.

    Of the five key rating factors that make up S&P’s analytical framework, for example, the agency highlights legal/regulatory and operational/administrative risks as the areas most .......

    News Analysis 8 March 2019

  • Stronger tone

    European ABS spreads tighten but supply muted

    There is a stronger tone in the European ABS market overall and there has been spread tightening across the board, from RMBS to CLOs. Supply is still low, however, especially in ABS.

    A trader says that a number of issuers in Europe are "ready to go", but they are still holding back as they await clarification around STS. The trader notes, .......

    Market Reports 8 March 2019

  • CDS reforms proposed

    Company hires and sector developments

    Australia

    Mortgage House has hired Steven Mixter as head of securitisation and structured finance. He was previously head of funding at Latitude Financial Services, responsible for maintaining its securitisation funding programmes.

    CDS reform proposal

    An ISDA working group has been discussing proposals to amend the 2014 ISDA Credit Derivatives Definitions to address issues relating to narrowly tailored credit events (NTCEs). NTCEs are arrangements with .......

    Market Moves 7 March 2019

  • Creative approach

    Definition of CRT criteria evolving

    As the drivers for banks to pursue risk transfer transactions have broadened over the last few years, lending criteria for the underlying assets have in turn become increasingly complex. Consequently, for structured or esoteric portfolios, capital relief trade issuers and investors are adopting a more creative approach to defining eligibility criteria and replenishment conditions.

    A standard capital relief ......

    News Analysis 7 March 2019

    Premium Content

  • Deleveraging deal

    Bari SRT performance consistent with expectations

    Scope has determined that the performance of Banca Popolare di Bari’s last significant risk transfer transaction with the EIF (SCI 17 August 2018) has remained within its expectations. The sequential deleveraging of the transaction offsets the loss potential from a growing delinquency pipeline for the rated tranche, according to the agency.

    The financial guarantee provided by the EIF to .......

    News 6 March 2019

  • CRE investor bulks out

    Company hires and sector developments

    CDX-linked ETF launched

    Tabula has launched a new ETF, dubbed Tabula European iTraxx Crossover Credit Short UCITS ETF (EUR), providing short exposure to high yield European corporate credit. It takes exposure via iTraxx Crossover five year which references 75 equally weighted, sub-investment grade entities.

    Digital asset platform bulks out

    GetLoci, the global platform offering non-custodial, self-minted assets backed .......

    Market Moves 5 March 2019

  • Line-up finalised

    CRT event to include two workshops

    The line-up for SCI’s 3rd Annual Risk Transfer & Synthetics Seminar on 12 March has been finalised. Hosted by Clifford Chance at 31 West 52 Street, New York, the event features for the first time two workshop sessions – one on creating structural common ground between capital relief trade investors and issuers; the other on how Basel 4 .......

    News 5 March 2019

  • STS synthetics pending

    EBA to publish report by year-end

    The EBA is expected to publish a report on STS synthetic securitisations by year-end, which will then be reviewed by the European Commission. The main challenges that the supervisor will be dealing with are the lack of performance data on synthetic securitisations and the creation of STS criteria for the sector.

    STS criteria for synthetic securitisations could further ......

    News Analysis 1 March 2019

    Premium Content

  • Downward drift

    Low default trend continues

    Global corporate defaults fell in 2018 in advanced markets and were stable in emerging markets. The persistence of the low default trend - in particular, in advanced economies - is a positive sign for capital relief trades, given that the bulk of these transactions reference European corporate loans.

    The default rate for non-financial corporates with rated debt in .......

    News 1 March 2019

  • New fund for CDS recruit

    Company hires and sector developments

    ABL acquisition
    Benefit Street Partners affiliate Business Development Corporation of America has acquired a controlling interest in asset-based lender Siena Capital Finance from Solaia Capital Advisors. Siena was founded in 2012 by an ABL team backed by Solaia consisting of professionals from Bank of Ireland subsidiary Burdale Capital Finance. Siena will operate independently as a portfolio company of BDCA, with .......

    Market Moves 28 February 2019

  • Debuting duo

    New ILS peril, domicile introduced

    GC Securities has placed a pair of innovative catastrophe bonds. Insurance Australia Group’s A$75m Orchard ILS transaction marks the first ILS issuance from Singapore, while Pool Re’s £75m Baltic PCC deal is the first-ever cat bond to cover terrorism risk exclusively and only the second to be issued under the UK’s new regulatory framework for ILS.

    Baltic PCC ......

    News 27 February 2019

    Premium Content

  • 'Long term solution needed'

    Day three from SFIG Vegas

    The last full day at SFIG Vegas was again abuzz with strong attendance and widespread optimism.

    One panel looked at UK firms looking to issue transactions into the US market. Brian Wiele, md at Barclays, commented that one of the steps needed at the moment to boost the sector is re-educating US investors on UK securitisations, as awareness of UK .......

    News 27 February 2019

  • Lights, camera, securitisation

    Film rights ABS remains attractive to studios

    The increasingly short length of time which films remain in movie theatres for these days may be frustrating for the average cinema-goer, but it is part of a trend which is optimising cashflows for film rights securitisations. This form of ABS allows the larger studios and their co-financiers to fund films, although smaller studios are expected to continue to .......

    News Analysis 27 February 2019
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