ABS

Rethinking securitization structures to attract junior investors

Many sectors of the market are rallying, investors have returned, enthusiasm is running

Spreads on asset-backed securities narrowed sharply across the board in 2012; as justified as this was, some sectors are already looking rich, according to participants at the ASF 2013 conference.

The narrative in Hollywood films tends to follow a three-act boilerplate — certain things happen to the protagonist at specific points over the course of the movie.

Southern Company’s Mississippi Power plans to do a utility securitization to recover the financing costs related to construction of its $3 billion coal-gasification power plant Kemper County.

Dedicated funds have proved crucial to the develop of CAT bonds and they will remain so

Do not expect much securitization activity out of Europe this year, said participants in a panel at the American Securitization Forum’s 2013 conference.

Participants on a panel at the ASF’s 2013 conference said the major stumbling block remains uncertainty about what would happen to covered bondholders in the event of a troubled issuing bank going into receivership.

In marked contrast to recent years, speakers at the first major panel of the day sounded some fairly upbeat notes.

The true-up mechanism structured in utility tariff ABS deals has helped deals with exposure to hurricane Sandy, weather the storm said Fitch Ratings.

Citi’s new service allow structured finance investors to access the bank’s secure investor reporting website to view notices online in real-time.

Direct Capital Corp. is planning a $163 million securitization of equipment loans and leases, according to a presale report published by Standard & Poor's.

Diamond Resorts completed its $93.56 million timeshare securitization, Diamond Resorts Owner Trust 2013-1.

Nationstar Mortgage plans a $900mn mortgage servicer advance asset-backed securitization this month, according to a Standard & Poor’s presale report.

Avolon plans to partner with Wells Fargo, to form a new joint-venture aircraft leasing business called Avolon Capital Partners Limited.

Moody's Investors Service put the ratings of some $20 billion of tobacco settlement revenue bonds under review, saying an agreement over disputed payments could reduce cash flows.

Until the SEC spells out the impact of the Volcker Rule on asset-backed commercial paper (ABCP) conduits, the volume of paper outstanding is likely to remain flat or drop slightly, according to a recent report by Standard & Poor’s.

Covered bond investors are taking a more flexible view of the ratings and other characteristics of these investments, according to a survey conducted last month by Fitch Ratings. Yet they are discriminating about which jurisdictions they want exposure to.

Goldman Sachs is marketing $650.35 million of loans backed by lease payments and sale proceeds of a portfolio of 26 narrowbody commercial aircraft.