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.


  • Same as ever?

    Davis+Gilbert partner Joseph Cioffi reflects on the performance of the US subprime auto sector in 20...

    The pandemic has been a surprising boon to the subprime auto ABS market, due to supply issues that h...

    Talking Point    18 January 2022
  • New leadership

    Sector developments and company hires

    Crestbridge has appointed Martin Lambert as its new head of UK operations following the retirement o...

    Market moves    17 January 2022
  • Longer-dated profile

    Project finance exposure embraced

    News    17 January 2022
  • SCI Start the Week - 17 January

    A review of SCI's latest content

    CRT Training launch SCI has launched a new Capital Relief Trades training course, providing complet...

    News    17 January 2022
  • Strong start

    European ABS/MBS market update

    European ABS/MBS got fully underway for 2022 over the past week. Both primary and secondary markets...

    News    14 January 2022
  • Navient agrees multi-state settlement

    Sector developments and company hires

    Navient agrees multi-state settlement Navient has reached agreements with 39 US state attorneys ge...

    Market moves    14 January 2022
  • Greek surge continues

    Eurobank finalises second SRT

    News    14 January 2022
  • Greek NPL JV agreed

    Sector developments and company hires

    Mount Street Group has received regulatory approval from the Bank of Greece to form a strategic part...

    Market moves    13 January 2022
  • Texas rising

    New Texas Capital broker dealer eyes securitization

    Texas Capital Bank has launched a broker dealer subsidiary, which is expected to extend its reach to...

    News    13 January 2022
  • Corporate SRT priced

    HSBC completes US capital relief trade

    News    12 January 2022
  • New partnership

    Sector developments and company hires

    Morningstar has announced the enhancement of its DealView product with the inclusion of climate risk...

    Market moves    11 January 2022
  • New moves

    Sector developments and company hires

    EMEA Ashurst is set to further expand its European securitisation team with the appointment of new...

    Market moves    10 January 2022
  • SCI Forum: does the STS regime work?

    Our expert responds to readers' questions

    Is STS doing what it is designed to do for the securitisation market? Daniel Hill, partner at Alle...

    Talking Point    7 January 2022
  • Atalaya to return (update)

    $232m Atalaya equipment leasing securitization to be followed by annual repeats

    The debut securitization of equipment leasing assets last month from Atalaya Capital Management is t...

    News Analysis    6 January 2022
  • Angel Oak hits up MILNs

    In the third and final in our series of EOY interviews with investment managers about where they exp...

    Colin McBurnette handles RMBS allocation for Angel Oak, and in 2021 he expanded the footprint of his...

    Talking Point    3 January 2022
  • Decision notice issued against BlueCrest

    Sector developments and company hires

    Decision notice issued against BlueCrest The UK FCA has published a decision notice against BlueCre...

    Market moves    24 December 2021
  • MCC secures synthetic

    Italian SME counter-guarantee deployed

    The EIF is set to counter-guarantee a portfolio of 5,652 operations backed by the Guarantee Fund for...

    News    23 December 2021
  • From strength to strength

    Landmark year for Aussie securitisation

    With A$48.79bn publicly placed across 64 individual transactions in 2021, the Australian securitisat...

    News Analysis    23 December 2021
  • Double first for the EIB

    EGF, first loss guarantee debuts

    The EIB Group has closed the first synthetic securitisation backed by the European Guarantee Fund (E...

    News    22 December 2021
  • Nephila taps LBR vehicle

    Sector developments and company hires

    Nephila taps LBR vehicle Nephila Capital has funded its newly launched Syndicate 2358, which focuse...

    Market moves    21 December 2021
  • Crucial conclusions

    EBE highlights importance of securitisation to the real economy

    A new joint study by AFME, European DataWarehouse and True Sale International demonstrates that the...

    News Analysis    21 December 2021