Searching...

Entity

= Ultimate Parent

Obligor
Analyst
Location
ISIN
CUSIP

Structured Finance

Global Home > Structured Finance

European Auto ABS Index Stable despite Steep Decline in UK Used Car Values

The UK, Germany, Spain and Italy all show a declining trend in used car prices this quarter, Fitch Ratings says in its latest index report for auto ABS in Europe. The change is particularly pronounced in the UK, where Brexit uncertainty is weighing heavily on consumer confidence. 
 

Catch up on our latest webinar:
Used Car Prices Decline – Not if Now, Why Now?

Higher Loss-Absorbing Capacity Rules to Slow Australia CVB Issuance

The Australian Prudential and Regulation Authority (APRA) in July 2019 announced its final rules on banks' total loss-absorbing capacity, which called on the four major banks to increase their capacity by 3pp of risk-weighted assets by January 2024.

Economy, Fuel Prices Are Key for Indian Auto ABS Performance

Data released this week by the Society of Indian Automobile Manufacturers showed that total auto production fell by 10.7% yoy in April-July 2019 and passenger vehicles sales dropped by 21.6% yoy.

China Structured Finance Quarterly - 2Q19

Chinese Auto ABS, RMBS Remain Strong Amid High Household Debt

The performance of Chinese auto ABS and RMBS transactions remained strong in 2Q19, despite the country's increasing household debt, due largely to the tight underwriting standards imposed by regulators, Fitch Ratings says. We continue to maintain the stable outlook for these two sectors. 

Chinese Auto-ABS Performance Pressure Eases in 2Q19

Auto-ABS issuance reached CNY78.4 billion by end-June 2019, exceeding issuance in the first three quarters of 2018. This was partly led by the continued rise in the auto-finance penetration rate to approximately 50% by end-2018, although it remained significantly lower than that of developed markets.

Late Cycle Risk Foremost on Minds of U.S. CLO Investors

While both the leveraged loan and U.S. CLO markets are seeing more late cycle behavior emerging, the make-up of the markets themselves has changed quite radically of late, according to Fitch Ratings in its 2019 Virtual Investor Video Series for Structured Finance.

Rising Household Debt May Weigh on Medium-Term Chinese Growth

Chinese household debt has continued to rise rapidly, reaching 85% of disposable income at end-2018. Rising servicing costs will weigh on economic growth in the medium term and this is reflected in our latest GDP forecasts.

 

Related Press Release:
Rising Household Debt May Weigh on Medium-Term Chinese Growth

webinar

Testing the Resilience of European CLOs to a Credit Cycle Downturn

Over the last few months Fitch has been testing the resilience of our portfolio of post-crisis European CLOs against a credit cycle downturn. Senior analysts from Fitch’s structured credit team discussed the topic and gave an insight into the parameters of our tests and the conclusions in this webinar.

 

Listen Now

2019 Virtual Investor Meetings: U.S. ABS

Unemployment is at its lowest level in half a century and wages are still growing. John Bella discusses what this means for core assets like credit cards, prime autos and even student loans in our Virtual Investor Meeting for U.S. ABS.

Rising Household Debt May Weigh on Medium-Term Chinese Growth

Chinese household debt has continued to rise rapidly, reaching 85% of disposable income at end-2018. Rising debt servicing costs do not pose near-term risks to financial stability, but will weigh on economic growth in the medium term and this is reflected in our latest GDP forecasts. 

Stronger Consumer Brands, Retailers to Outperform in China's Challenging Market

Fitch Ratings believes there are opportunities for specific retail and consumer companies to outperform the overall industry, even amidst slowing retail sales and weaker consumer sentiment. Consumers are becoming more selective in their purchases, but are still keen to spend, particularly in lower-tier cities, where income growth is higher.

2019 Virtual Investor Meetings: Australia Structured Finance

The property market in Australia has always caught investors’ attention. Chris Stankovski, Senior Director, Structured Finance, Australia, shares his views on the market performance, outlook, and how the regulatory landscape for mortgages has changed in Australia.

Structured Finance 2000-2018 Issuance Loss Estimates Down

Total losses on US and Canadian structured finance (SF) bonds are concentrated in crisis-era transactions (2005-2007 vintages) and primarily consist of losses on US RMBS, Fitch Ratings says in a new report. Losses on SF tranches issued prior to 2009 contribute 99.9% of total SF losses. Approximately 95% of pre-crisis bond issuance is resolved (repaid or loss realized) or withdrawn. 

2019 Virtual Investor Meetings: China Structured Finance

The China Securitisation Market has seen phenomenal growth in the past few years. Hilary Tan, Senior Director and Head of Greater China Structured Finance, discusses the developments and key drivers behind the growth.​

2019 Virtual Investor Meetings: U.S. RMBS

A widening array of innovative mortgage loans emerging this late in the economic cycle will merit some caution for U.S. RMBS investors, as Rachel Noonan discusses in our first 2019 Virtual Investor Meeting for Structured Finance.

Rating Action

Fitch Upgrades Fuyuan 2018-2's Class B to 'AA+sf' and Affirms Class A1, A2; Outlook Stable

Fitch Ratings has upgraded the rating on the class B notes from Fuyuan 2018-2 Retail Auto Mortgage Loan Securitization Trust , and affirmed the ratings on the class A1 and A2 notes. The transaction is a securitisation of Chinese automotive loan receivables originated by Ford Automotive Finance (China) Limited (FAFC), a wholly owned subsidiary of Ford Motor Credit Company LLC (BBB/Negative/F2).

Major European Cities Face Cooling Home Price Growth

Home price growth in Amsterdam, Berlin, Dublin and Madrid is expected to cool this year and next after several years of rapid growth across Europe.
 

Read the Report on European City Housing Outlook 2019 and visit our Global Housing and Mortgage landing page.

 

Listen Now:
Falling Home Prices in London, Stockholm & Sydney – Cause and Effect
 

Fitch Global ABS Survey Indicates Sharply Falling Optimism on Issuance Levels

Delegates at this year's Global ABS conference in Barcelona were considerably less optimistic about publicly-placed European structured finance issuance volumes compared to last year, according to a survey conducted by Fitch Ratings. Just 36% of respondents expected 2019 issuance volumes to beat last year's EUR162.3bn, down sharply from 77% in 2018 that expected a year on year rise. 

EMEA Structured Finance Mostly Stable in 1Q19

Structured finance transactions in EMEA continued to perform well in 1Q19, with 83% of Fitch's ratings affirmed or kept stable (967 tranches), 16% upgraded (186 tranches) and only 1% (14 tranches) downgrade.

Unclear Euribor Definitions Could Overstate the WAS in European CLOs

Unclear Euribor definitions could overstate the reported weighted average spread (WAS) of European collateral loan obligations (CLOs). Investors should examine the WAS definitions carefully to gain awareness of the possible WAS uplift due to negative Euribor and evaluate the impact of WAS adjustments when comparing CLO transactions. 

European Auto ABS Index Stable, but on Worsening Trend

The Fitch 30+ and 60+ Delinquency Indices remained stable in 1Q19, although the overall trend has been of gradually rising arrears since mid-2016, says in its latest index report for the sector.

 

Catch up on our latest webinar:
European Auto ABS 2Q19 Update available here On-demand

Listen Now

Fitch Ratings & KangaNews

Investor Fears Escalate About Australia's Falling House Prices

Falling house prices pose the most serious threat to Australian credit markets over the next 12 months, according to Australian fixed-income investors. The vast majority (95%) of investors expect house prices to keep falling over the next 12 months.

ReportAustralian Fixed-Income Investor Survey 2Q19

Fitch Launches China-Based RMBS and Consumer ABS Indices

Fitch Ratings has started tracking the performance of transactions issued in the China Interbank Bond Market by publishing RMBS and Consumer ABS indices.

Webinar

EMEA Structured Finance Losses Remain Very Low

Total losses on EMEA structured finance (SF) are low and are concentrated in certain crisis-era transactions, Fitch Ratings says in a new report. More than three-quarters of all expected losses have now been realised. 

Available On-demand: Fitch Discusses EMEA Structured Finance Losses 2000-2018

Chinese Auto-ABS Performance Stabilising at a Higher Level in 1Q19

However, the index is stabilising at a slightly higher level compared with 2017 due to a crackdown on cash loans, which has also affected borrowers that entered the car-finance market. An increase in issuers with shorter histories and a wider customer base may also be pressuring asset performance.

FITCH & KANGANEWS

Rising Fears About Falling House Prices

Falling house prices pose the most serious threat to Australian credit markets over the next 12 months, according to Australian fixed-income investors. Fitch Ratings and KangaNews' 2Q19 survey reveals that 70% of fixed-income investors rank a domestic housing-market downturn as the top risk to local credit markets, with a notable shift in sentiment. The survey was undertaken in partnership with KangaNews - a specialist publishing house that provides commentary on fixed-income markets in Australia and New Zealand. 
 

Watch video about Investor Fears Escaluate About Australia's Falling House Price

Fitch Group and the LSTA Bring Transparency to Loan Market with New Content

Fitch Group and the Loan Syndications and Trading Association (LSTA) today announced that Fitch Group's leveraged loan expertise will now be available to LSTA members alongside the LSTA's other resources.

Asia-Pacific Structured Finance Newsletter (March 2019)

Welcome to the Asia-Pacific Structured Finance Newsletter. This newsletter presents a quick summary of structured finance news and developments in APAC each month.

 

Click here for signing up APAC Structured Finance Newsletter

APAC Structured Finance Stable in 1Q19

A total of 227 tranches from the transactions in APAC were affirmed, with RMBS accounting for 110 tranches, followed by auto ABS at 60, credit card ABS at 42, unsecured consumer loan ABS at five, single borrower CMBS at five, structured credit at three and ABCP at two.

Fewer OI Debt Relief Filings Neutral for French SF Deals

The falling number of over-indebtedness (OI) filings by French retail borrowers is neutral for French structured finance (SF) transactions. While the decline signals that fewer borrowers are struggling to repay their debts, those who do file are likely to have particularly weak credit profiles, reducing recoveries. 

LIBOR Mortgages Pose Basis, Legal and Practical Risk for UK RMBS

The discontinuation of LIBOR could introduce basis risk for the UK non-conforming and buy-to-let (BTL) RMBS markets if assets and liabilities reset to different reference rates. Senior tranches are well protected, but junior tranches of legacy non-conforming transactions and excess spread notes of more recent BTL securitisations are more exposed.

 

Now Available On-Demand
A series of comments published by Fitch on the transition away from IBOR.


Listen Now

 

Mortgage Market Index Report, UK

Late-stage arrears in rated UK non-conforming pools have risen over the past six months while arrears for prime mortgages have been stable. Continued Brexit uncertainty point to downside risks for the UK mortgage market. Download our Mortgage Market Index report for the UK to learn more

Webcast

IBOR Transition Webinar

Available On-Demand

Fitch’s Chief Credit Officer, Jeremy Carter, and Group Credit Officer, Andreas Wilgen, discuss the progress which has been made to prepare financial markets for the discontinuation of IBOR indices and highlight the risks which still remain.

 

Listen Now

Contacts

Marjan van der Weijden

Global

Marjan van der Weijden

Analytical Group Head

+1 212 612 7850

Doug Murray

Global

Doug Murray

Business Group Head

+1 212 908 0518

Ben McCarthy

APAC

Ben McCarthy

Analytical

+61 2 8256 0388

Sing Chan Ng

APAC

Sing Chan Ng

Business

+65 6796 7210

Susanne Matern

EMEA

Susanne Matern

Regional Group Head

+49 69 768076 237

Beatrice Mezza

EMEA

Beatrice Mezza

Business

+44 20 3530 1273

Maria Paula Moreno V.

LATAM

Maria Paula Moreno V.

Analytical

+1 312 606 2399

Samuel Fox

LATAM

Samuel Fox

Business

+1 312 606 2307

Rui Pereira

North America

Rui Pereira

Regional Group Head

+1 212 908 0766

Fitch Updates Terms of Use & Privacy Policy

We have updated our Terms of Use and Privacy Policies which cover all of Fitch Group's websites. Learn more.