ABS

ABS or asset-backed securities are bonds or notes created via securitisation that are backed by a range of assets or receivables. Generically, all securitisations can be labelled ABS and it is often used as a coverall term; in some cases in SCI, ABS will be used in this manner. However, in many cases, ABS are taken to exclude mortgage-backed securities (MBS) and structured credit instruments, such as CDOs. If so, then asset-backed securities or ABS are taken to include consumer ABS, such as credit card securitisations, auto loan or dealer floorplan ABS, student loan securitisations, project finance/infrastructure securitisations and equipment leasing-based transactions. ABS originators are typically loan issuers, such as banks, credit card companies, auto finance and consumer finance firms, but can be any institution that generates regular, quantifiable future income flows (or cashflows), which includes governments. To create asset-backed securities, institutions sell pools of their loans to a special-purpose vehicle, or SPV, which then sells the loans to a trust. The trust then repackages the loans as interest-bearing securities and issues them. This true sale of the loans to the SPV ensures that the ABS is treated as being bankruptcy-remote from the originator.

• ESG catalyst?

  Positive impact SRTs gaining traction

  Significant risk transfer is primarily associated with achieving favourable capital treatment. Howev...

  News Analysis    3 April 2020

• Breathing space?

  EU banks benefit from Basel 3 delay

  The Basel Committee's decision last week to delay implementation of the final Basel 3 rules...

  News    2 April 2020

• Development finance

  Securitisation mooted for SME house builders

  SME house builders struggle to access finance, despite being responsible for around 13% of new build...

  News Analysis    2 April 2020

• CRR compliance for NHG guarantee

  Sector developments and company hires

  EMEA Addleshaw Goddard has hired structured finance partner Rachel Kelly from McDermott Will &...

  Market moves    1 April 2020

• Real asset focus

  Stephane Delatte, ceo and cio of Pierfront Capital, answers SCI's questions

  Q: How and when did Pierfront Capital become involved in investment? A: Pierfront Capital was estab...

  The Structured Credit Interview    1 April 2020

• Advancing assistance programme prepped

  Sector developments and company hires

  Advancing assistance mooted Ginnie Mae is tailoring the existing disaster pass-through assistance...

  Market moves    31 March 2020

• CECL delayed

  EU banks await IFRS 9 relief

  The US Fed, the FDIC and the OCC last week approved an extension of the new credit loss accounting s...

  News    31 March 2020

• Basel 3 implementation deferred

  Sector developments and company hires

  APAC fund launch Pierfront Capital Fund Management has been awarded its capital market services l...

  Market moves    30 March 2020

• Capacity constraints

  Covid-19 not yet posing solvency issues

  Government and central bank actions have kept both the financial system and the real economy afloat...

  News Analysis    30 March 2020

• SCI Start the Week - 30 March

  A review of securitisation activity over the past seven days

  Transaction of the week Northern Arc Capital and fintech platform CredAble have closed a trade fina...

  News    30 March 2020

• Testing times

  MPL platforms addressing coronavirus impact

  As an expansion-era product, marketplace lending securitisation is expected to be tested for the fir...

  Talking Point    27 March 2020

• Euro CLO coronavirus exposure mitigated

  Sector developments and company hires

  Euro CLO coronavirus exposure mitigated A portion (15%) of European CLO collateral is derived from...

  Market moves    27 March 2020

• Liquidity risk

  Pandemic pressure on NPL performance

  Economic disruption caused by Covid-19 is expected to negatively impact the timing and amount of col...

  News    27 March 2020

• UK WBS hit expected

  Sector developments and company hires

  APAC Frontier Advisors has appointed Joe Clark as senior consultant in its alternatives and deriv...

  Market moves    26 March 2020

• Closing the gap

  Audentia Global investor relations head Sophia Vanco and chief of staff Nick Makin answer SCI's ques...

  Q: How and when did Audentia Global become involved in the capital relief trades market? NM: Aude...

  The Structured Credit Interview    26 March 2020

• Call for TALF expansion

  Sector developments and company hires

  BlackRock hired The New York Fed has retained BlackRock Financial Markets Advisory as a third-party...

  Market moves    25 March 2020

• TALF response mixed

  Fed facility could be found wanting

  The US Fed’s introduction of the new iteration of the Term Asset-Backed Securities Loan Fa...

  News Analysis    24 March 2020

• Fed revives the TALF programme

  Sector developments and company hires

  Return of the TALF The US Fed announced a slew of new measures to support the credit markets this m...

  Market moves    23 March 2020

• CRT deals disclosed

  Intesa publishes capital management strategy

  Intesa Sanpaolo has released details of its capital management strategy, following the release of it...

  News    23 March 2020

• SCI Start the Week - 23 March

  A review of securitisation activity over the past seven days

  SCI NPL Securitisation Awards 2020 - new deadline SCI NPL Securitisation Awards 2020 - new de...

  News    23 March 2020

• Invoice ABS debuts

  First trade receivables securitisation for India

  Northern Arc Capital and fintech platform CredAble have closed a trade finance securitisation backed...

  News    23 March 2020