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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.


  • Performance tracked

    Peripheral NPL ABS compared

    JPMorgan has launched respective performance trackers for Italian and Iberian non-performing loan se...

    News    12 November 2019
  • First RMBS tied to AONIA marketing

    Company hires and sector developments

    AONIA debut Commonwealth Bank of Australia’s new A$1bn Medallion Trust Series 2019-1 is...

    Market moves    11 November 2019
  • SCI Start the Week - 11 November

    A review of securitisation activity over the past seven days

    Stories of the week Pursuing illiquidity premia Corbin Capital answers SCI's questions Risk t...

    News    11 November 2019
  • MPL ABS breaches liquidity covenant

    Sector developments and company hires

    EMEA BTIG has established a fixed income credit division in London to service clients across EMEA...

    Market moves    8 November 2019
  • Liquidation challenges

    Greek economy precludes enforcement option

    An improvement in economic fundamentals and reform efforts has boosted both the deal flow and prospe...

    News Analysis    8 November 2019
  • Risk transfer return

    Bank of Ireland issues mezzanine tranche

    Bank of Ireland has issued an additional mezzanine tranche on top of the junior tranche of a 2017 ca...

    News    8 November 2019
  • Risk transfer round-up - 8 November

    CRT sector developments and deal news

    BMO will call a capital relief trade dubbed Muskoka Series 2017-1 in December. The senior secured an...

    News    8 November 2019
  • Rollover prepped

    NPL CRT to be refinanced

    Hoist Finance is readying a rated securitisation backed by Italian unsecured non-performing loans wi...

    News Analysis    7 November 2019
  • Pursuing illiquidity premia

    Corbin Capital ceo Tracy McHale Stuart and cio Craig Bergstrom answer SCI's questions

    Q: How and when did Corbin Capital become involved in the securitisation market? TMS: We&rsqu...

    The Structured Credit Interview    6 November 2019
  • CMBS md recruited

    Sector developments and company hires

    North America Incapital has appointed William White as md, CMBS. Based in Boca Raton, he will rep...

    Market moves    6 November 2019
  • SCI Capital Relief Trades Awards 2019

    Personal Contribution to the Industry: Mascha Canio, Head of Credit & Insurance Linked Inves...

    Heading up a team responsible for one of the largest investment portfolios in the sector that has dr...

    News    6 November 2019
  • NPL ABS inked

    Sector developments and company hires

    Eminent domain mods introduced To address the heightened risk to borrowers and investors of a multi...

    Market moves    5 November 2019
  • SCI Capital Relief Trades Awards 2019

    Advisor/Service Provider of the Year: Scope Ratings

    Scope Ratings has been selected as SCI’s Advisor/Service Provider of the Year, thanks to i...

    News    5 November 2019
  • SCI Capital Relief Trades Awards 2019

    Credit Insurer of the Year: Arch Capital Group

    Arch Capital Group Ltd (ACGL) is SCI’s Credit Insurer of the Year in recognition of its po...

    News    4 November 2019
  • SCI Start the Week - 4 November

    A review of securitisation activity over the past seven days

    Transaction of the week Goldman Sachs is in the market with an unusual UK buy-to-let RMBS secured b...

    News    4 November 2019
  • Tactical opportunity?

    Downturn could spur CRT secondary activity

    Capital relief trade secondary market activity remains minimal. However, a credit downturn could spu...

    News Analysis    4 November 2019
  • RFC issued on disclosures

    Sector developments and company hires

    CDO transfer CVP CLO Manager has resigned as investment manager to the CVP Cascade CLO-1 and CLO-2...

    Market moves    1 November 2019
  • Cautious optimism

    NPL ABS opinion welcomed, although challenges remain

    The EBA’s recent opinion on non-performing loan securitisations (SCI 24 October) has been...

    News Analysis    1 November 2019
  • Tough approach continues

    RTS leaves disclosure challenges unresolved

    The European Commission’s long-awaited regulatory technical standards on securitisation di...

    News Analysis    1 November 2019
  • SRT report pending

    EBA to propose harmonised excess spread treatment

    The EBA is set to propose a harmonised regulatory treatment for excess spread in significant risk tr...

    News Analysis    1 November 2019
  • SCI Capital Relief Trades Awards 2019

    Law Firm of the Year: Clifford Chance

    Clifford Chance has been involved in the capital relief trades market from the beginning and the pas...

    News    1 November 2019