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.

• Risk transfer round-up - 30 November

  CRT sector developments and deal news

  News    30 November 2020

• SCI CRT Awards 2020

  Issuer of the Year: Intesa Sanpaolo

  Intesa Sanpaolo has won the Issuer of the Year category at SCI’s Capital Relief Trades Awa...

  News    30 November 2020

• SCI Start the Week - 30 November

  A review of securitisation activity over the past seven days

  Last week's stories Double trouble Two - not one - JP Morgan corporate loan CRT trades h...

  News    30 November 2020

• NPL ABS capital treatment amended

  Sector developments and company hires

  NPL ABS capital treatment amended The Basel Committee has published a technical amendment in connec...

  Market moves    27 November 2020

• Excess spread harmonised

  EBA's SRT recommendations released

  The EBA’s long-awaited final report on significant risk transfer details a set of recommen...

  News Analysis    27 November 2020

• SCI CRT Awards 2020

  Credit Insurer of the Year: RenaissanceRe

  RenaissanceRe (RenRe) has won the Credit Insurer of the Year category in SCI’s Capital Rel...

  News    27 November 2020

• Offshore demand

  Chinese securitisation continues to gain traction

  A growing number of Chinese securitisation issuers are attempting to tap offshore investors, the mos...

  News Analysis    27 November 2020

• SCI CRT Awards 2020

  Investor of the Year: Alecta-PGGM

  The coming together of Alecta and PGGM to focus on credit risk sharing transactions (CRS), as they t...

  News    27 November 2020

• Jumbo BDC merger agreed

  Sector developments and company hires

  Jumbo BDC merger agreed FS/KKR Advisor, a partnership between FS Investments and KKR Credit Advis...

  Market moves    26 November 2020

• SCI CRT Awards 2020

  Innovation of the Year: Vale Securities Finance 2019-1

  Unfunded protection has historically been focused on capital relief trade senior mezzanine exposures...

  News    26 November 2020

• Bridge financing inked

  Hertz set to re-fleet under bankruptcy emergence plan

  Hertz Corporation, in conjunction with affiliates of Apollo Capital Management, has established an i...

  News    26 November 2020

• SCI CRT Awards 2020

  Impact Deal of the Year: Project Grasshopper

  NatWest has raised the bar for impact investment capital relief trades with December 2019’...

  News    26 November 2020

• SCI CRT Awards 2020

  North American Transaction of the Year: Chase 2019-CL1

  It would take a brave man, or woman, to argue that JPMorgan’s Chase Mortgage Reference Not...

  News    25 November 2020

• SCI CRT Awards 2020

  Transaction of the Year: Resonance 5

  The winners and honourable mentions of the 2020 SCI Capital Relief Trades Awards were unveiled durin...

  News    25 November 2020

• UK STS notification portal launched

  Sector developments and company hires

  UK STS notification portal launched The UK FCA has launched its new STS notification platform, with...

  Market moves    24 November 2020

• Restructuring boost

  Project Galaxy portfolio acquired

  Alpha Bank has selected US investment fund Davidson Kempner as its preferred bidder over PIMCO for i...

  News    24 November 2020

• EBA SRT report released

  Sector developments and company hires

  EBA SRT report released The EBA has published its long-awaited report on significant risk transfer...

  Market moves    23 November 2020

• Risk transfer round-up - 23 November

  CRT sector developments and deal news

  News    23 November 2020

• Generation change?

  Investor, issuer ESG engagement surveyed

  The vast majority (81%) of ABS issuers polled in a recent Structured Finance Association survey curr...

  News    23 November 2020

• SCI Start the Week - 23 November

  A review of securitisation activity over the past seven days

  SRT seminar TODAY Join SCI today and tomorrow, 23 and 24 November, for its virtual 6th Annual Capit...

  News    23 November 2020

• Highland trio launch new firm

  Sector developments and company hires

  Highland trio launch new firm Ex-Highland Capital Management executives Mark Okada, Jack Yang and T...

  Market moves    20 November 2020