BofA Merrill analysts dispute that the ECB is making timid purchases of securitization because there isn't enough available. The bank could buy more by bidding aggressively in BWIC auctions.
The lender has priced all of the notes to be issued by SMB Private Education Loan Trust 2015-A, including $704 million of notes and the residual interest in the deal, valued at $50 million.
The unwind will likely result in the sale or early liquidation of the securitization trusts and servicing platforms for outstanding deals backed by asset-based loans, inventory financing and equipment loans and leases.
Compared with automaker's most recent deal, completed in July 2014, the weighted average FICO score of borrowers in this deal has decreased slightly, to 742 from 746.
Low-income borrowers are responsible for much of the recent surge in student loan defaults and delinquencies, according to new research by the Federal Reserve Bank of New York.
Regulation AB governs registration, reporting and disclosure requirements for all things asset-backed. The Securities and Exchange Commission appears to be ready to update it significantly, but, nearly four years after changes were originally proposed, its not clear exactly what the Commission will do.
The swelling trillion-dollar student loan market is missing key data and regulations necessary to head off another financial crisis, according to Rohit Chopra, the Consumer Financial Protection Bureaus top official in charge of dealing with student loans.
The proposal would introduce dissemination of trade prices for securities ranging from highly liquid credit card and auto ABS to smaller and more esoteric deals in asset classes such as time shares, to commercial mortgage-backed securities (CMBS) and highly structured CDOs and collateralized loan obligations.
Overall issuance growth will moderate in 2014, Fitch Ratings' managing director for asset backed securities says in the firm's outlook.
Direct exposure to either J.C. Penney or Sears is typically highest in seasoned deals where there are only a small number of loans remaining, and one is secured by a retail property.
Firm: 3i Debt Management
It's one of the biggest regulatory hurdles the market has faced since the financial crisis, and promises to bring wholesale changes to the structures of transactions as well as to the business models of managers. Clifford Chance partner Steven Kolyer weighs in.Current Issue