ABS traders Hahn Kang and Emile Van Den Bol have recently left Lehman Brothers. Kang traded mortgage-related product, and more recently, esoteric products and CDOs. He is now at Metropolitan West Asset Management. Van Den Bol, who traded esoteric products, is now at Deutsche Bank. Both were considered key traders on the asset-backed desk, sources said.
Hypovereinsbank is in hiring mode for its derivatives and securitization efforts, adding three ex-Standard & Poor's pros to it risk management products group.
Reza Bahar joined the New York office of HVB as a managing director in charge of a new transaction response team. Christian Negpal starts this week, also in the New York office, while Fiona Gregan will be joining the London office of HVB. All three report to Tom Glynn, head of securitization and credit engineering.
Reza was most recently at S&P as head of the derivatives ratings group. Gregan was most recently at the London office of S&P, heading a group responsible for derivatives products and structured investment vehicles (SIVs), among other things. Negpal, also a former S&P staffer, was most recently at CDC Capital.
While market speculation, especially on the European end, is that HVB could be planning SIV program, a spokesman for the bank said that these three are not joining for that reason.
Another Korean consumer finance company is rumored to be in the market with a deal similar to Samsung's recent revolving cross-border deal, backed by credit card receivables. While the players are still unknown, the amount is said to be up to $500 million.
Fitch is said to be readying an online surveillance model for collateralized debt obligations.
Hollis Receivables Term Trust last week priced a three-year, C$400 million tranche at +37bp over Canadas; and a five-year, $600 million part sold at +44 bp over. Scotia Capital led the AAA rated deal. The rest of the syndicate included RBC Dominion Securities, CIBC World Markets, TD Securities, Merrill Lynch Canada, National Bank Financial, and BMO Nesbitt Burns. The deal was rated by Moody's Investors Service and Dominion Bond Rating Service. The paper is secured by Scotialine personal line of credit receivables. The issue went well, with the marketing period lasting for less than an hour. There was good demand for the notes; the subordinate notes sold well.
Gloucester Credit Card Trust which was established to purchase interests in credit card receivables and related assets from MBNA Canada Bank and its affiliates, closed its third Canadian public transaction on Wednesday last week. The transaction was well received by investors. The notes were issued at 49 bps over Canadas (the tight end of the range) and were rated AAA by Standard & Poors, Moody's and DBRS. MBNA's issue spread continues to tighten relative to comparable transactions completed by the Schedule 1 banks. Nesbitt Burns lead the transaction. Other dealers included CIBC, Merrill Lynch, RBC Dominion and TD.
Spain's AYT Cedulas Cajas Fondo de Titulizacion de Activos (AYT) issued E2.048 billion fixed rate bonds that were assigned a Aaa rating from Moody's Investors Service. This transaction marks the first of it's kind, and is expected to serve as a prototype for other similar structures in the future.
Standard & Poor's has lowered Turkey's long term sovereign rating to single-B-minus from single B, as a result of the country's ability to get a handle on budget financing, stabilize the public debt stock and the high exchange rate. The downgrade comes despite the recent announcement that the International Monetary Fund's (IMF) will provide a fiscal program.
May 15-18: Paris, France-The Strategic Research Institute will hold The Fourth Annual Global Securitization Symposium. For more information, visit www.srinstitute.com or call 888-666-8514.