Credit issuance

Swap spreads tend to narrow with slower economic growth, reflecting reduced corporate issuance and steady or increased high grade credit issuance. A good proxy for economic growth is capacity utilization. 

A feasibility test is conducted to ensure that constituents that would inhibit the Aqua-Fix absorption capabilities do not exist in the water. This test, including characterization, testing, and a report is 275.00 per contaminant. Two hundred dollars of the cost can be credited toward an order of 1000.00 or more if placed within 60 days of the issuance of the report (D14690R, p. 4). 

There are two basic forms of pooled commercial mortgage transactions the true sale and the synthetic structures. The true sale mechanism, as its name suggests, involves the sale of assets from the originator s balance sheet to an SPV, which are then used as security for the issue of notes to investors. Synthetic structures, by contrast, involve the creation of a credit derivative linked to the performance of a pool of loans. The loans themselves remain on the balance sheet of the originator but the credit risks associated with these loans are transferred through the credit derivative to investors. Synthetic structures can simplify the issuance process and avoid many of the complexities (and costs) associated with the sale of assets in many jurisdictions. 

EXHIBIT 18.8 Credit Card Issuance—European Collateral... 

Issuance of European CCABS is clearly dominated by repeat issuers, accounting for more than 90% of total issuance volume. Credit card Issuers that have accessed the securitisation market only once include Findomestic Banca S.p.A. (2000), Diners Club Europe S.p.A. (and others) (2001) and Egg Banking PLC (2002). 

Most credit card transactions completed have usually come with three tranches. The Class A Notes, approximately 90% of all European CCABS issued, are usually triple-A rated, the Class B Notes, which account for approximately 5%, are usually single-A rated and the most junior tranche, the Class C Notes, accounts for approximately 5% and is usually rated triple-B. Exhibit 13.5 shows European credit card issuance by rating since the market s inception in 1995. 

EXHIBIT 18.5 European Credit Card Issuance by Rating... 

In the United States, standalone trusts were the dominant issuance vehicles from 1987 to 1991. An originator designates a specific pool of credit card accounts and sells the receivables and rights to the future receivables arising from those accounts to a discrete trust. The major disadvantage with standalone trusts is that each subsequent securitisation requires the issuer to set up a new trust. This structure was used until 1991 when the master trust became the preferred issuance vehicle. 

Due to the youth of the Euro credit market, an accurate comparison with the sterling market is difficult to make, but we can still observe an increased issuance of longer-dated bonds. 

Convertible and exchangeable issuance has risen recently driven by several factors from equity market volatility to German tax reform. Stripped convertibles are convertible bonds where the equity option has been stripped out and represents pure credit, callable after a specified date. 

There are two types of reserve funds cash reserve funds and excess servicing spread accounts. A cash reserve fund is a separate fund into which a portion of the profits from the bonds issuance have been deposited and invested in short-term hank securities. In a default, the cash in the fund is used to compensate investors who have suffered capital losses. A cash reserve fund is often set up in conjunction with another type of credit enhancement, such as a letter of credit. 

The period 2005 to first half2007 was a period of very high growth for the issuance of CDOs. During this period the growth in the CDO product was investor-driven and high volumes of arbitrage CDO transactions were issued. However, a big impact of the credit crunch from 2007 has been a sharp decline in new issuance of CDO product. 

Since the start of the credit crunch, there has been a sharp decline in the issuance volumes for both ABS CDO and CLO in 2008. FIGURE 16.4 shows issuance by type of underlying collateral, and FIGURE 16.5 is a summary of CDO issuance volumes between 2004 and 2008. 

Banks were exposed to the performance of credit assets that were held on balance sheet awaiting securitization. As the CDO issuance market started to fall in volume in mid 2007, banks were forced to write down some asset positions, as it became increasingly difficult to sell these assets to CDO vehicles and into the wider market. Many banks were positioned the same way, and this caused a fall in the appetite to make bids for assets. 

Per the staff review, the procedures define the SRS fully trained and equipped fire department credited in the SAR. The procedures define training levels of fire support teams for the K-Reactor (100 areas), but do not define the auxiliary fire brigades credited in the SAR. This area will remain open pending formal issuance of SRS Fire Department Operations. Additionally, the following open items remain ... 

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