ABS

Global agribusiness and food company Bunge Limited recently closed a program for the securitization of its trade receivables to the tune of $700 million, according to a press release from Finacity Corporation, which was the program structurer and administrator.

U.S. Subprime CDS prices more than doubled their increase from the previous month, rising 1.7% overall. According to the latest Fitch Solutions report, this brings the subprime rally to its unprecedented seventh consecutive month.

The Argentine province of Misiones is making unwelcome noise in the securitization market, as it seeks to expand the application of a stamp tax on trust agreements and securitization trusts regardless of where the documents are processed, according to Moody’s Investors Service.

The six regulatory agencies working on the risk retention rule are considering a proposal to extend the comment period until August 1, according to industry officials.

Argentina’s provinces are re-enacting the past. In the last year, three have publicly issued deals backed in part by revenue from a federal government institution, recalling a time when securitizing co-participation revenue from the central government was all the rage. That was before the crisis of 2001-2002.

New issuance for collateralized loan obligations (CLOs) continues to play a meaningful role in reducing the debt wall of existing CLOs nearing the end of their reinvestment periods, according to a Moody's Investors Report.

The largest U.S. banks are quietly preparing to push back against proposed Basel III liquidity requirements that they argue could wreak havoc in the market by artificially deflating the value of certain assets.

After a strong recent performance, the CLO new issuance market now faces potential challenges posed by risk retention rules under the Dodd-Frank Act.

The Basel Committee on Banking Supervision finalized its review of the Basel III standard for capital treatment for counterparty credit risk in bilateral trades and plans to modify the risk weighting of credit valuation adjustment (CVA), which is the risk of loss caused by changes in the credit spread of a counterparty due to changes in its credit quality.

The government is a month into selling its AIG holdings. Despite the bids for the auctions being pre-announced, the sales are causing a commotion in the RMBS secondary market, and the reaction from securitization players is not entirely positive.

Fitch Ratings is finalizing its new model framework for determining loan losses on pools of U.S. prime residential mortgage loans, which includes several important updates. Chief among them is the application of a proprietary sustainable home price model (SHP Model) that measures a property's current price against its sustainable value. The SHP model allows Fitch to take a forward looking, countercyclical view on the potential for negative equity, which has shown to strongly influence borrower default behavior.

No conference on Latin American structured finance would be complete without a discussion of diversified payment rights (DPRs), the asset class of electronic money flowing through banks that boasts a default rate lower than triple-A U.S. corporates.

The Securities and Exchange Commission's (SEC) proposal issued May 18 to implement rules mandated by the Dodd-Frank Act tasks rating agencies with measures most have sought to address, but the proposal's detailed requirements could instead overwhelm smaller agencies.

So far it is largely confined to the auto lending sector. But, given recent history, the natural question is whether subprime - which, strikingly, has kept its old name - could spread and prompt a replay of the financial crisis.

Vendors anticipated hearing May 27, the Friday after ASR's deadline, whether they could bid on the contract to build and operate a repository to collect and make available data for loans backing European RMBS, a project several steps ahead of a similar effort in the U.S.

Sharjah Islamic Bank returned to the international Sukuk market for the first time since its 2006 inaugural issuance. The transaction was oversubscribed by more than nine times.The $400 million, fixed-rate Sukuk certificates, which are due in 2016 yielded 4.715% annually. The structure comprises the sale and purchase of non-real-estate-based ijara assets by the trustee, which are then managed by Sharjah Islamic as the trustee's agent and the certificateholders.The Sukuk certificates were assigned a rating of 'BBB+' by Fitch Ratings and 'BBB+' by Standard & Poor’s and were globally distributed with demand from investors in the Middle East, Asia and Europe.Th offering's joint lead managers were HSBC, Standard Chartered Bank and Liquidity House. The co-lead managers were Qatar Islamic Bank, Abu Dhabi Islamic Bank, Qatar First Investment Bank, Dubai Islamic Bank and Al Hilal Bank PJSC. Clifford Chance was the issuing bank's adviser on the deal.

Manager Activity: Autos Book Runner Amount (US$ Mil) Rank Mkt.

Increased supply, both in the primary and secondary markets via BWICs, and weaker market sentiment have pushed spreads wider.

Zipcar has renewed its ABS program led by Credit Agricole Corporate & Investment Bank (Credit Agricole CIB).

Norske Skog's said it was seeking to raise €300 million ($426 million) via a senior unsecured five-year bond that will be callable after three years and will replace debt due next year.