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.

• Injunction sought over Blue Owl combination

  Sector developments and company hires

  Injunction sought over Blue Owl combination Golub Capital Partners, one of 17 partner managers in...

  Market moves    25 February 2021

• Risk transfer round-up - 25 February

  CRT sector developments and deal news

  News    25 February 2021

• Democratising access

  Debut Indian wealth-tech bond repaid

  The debut bond structured by Indian wealth-tech platform GrowFix has been fully repaid, with investo...

  News    25 February 2021

• Record fundraising

  Chorus exceeds SRT fund targets

  Chorus Capital has concluded fundraising for Chorus Capital Credit Fund IV, its latest dedicated sig...

  News Analysis    25 February 2021

• Strong pipeline

  European ABS market update

  Bank of America’s Taurus 2021-1 UK has priced at tight levels for UK CMBS transactions on...

  News    23 February 2021

• Supply issues

  STS volumes concentrated in auto loans

  Of the securitisation asset classes that qualify for STS status, auto loan ABS is where the label ha...

  News Analysis    23 February 2021

• Irish NPE portfolio offloaded

  Sector developments and company hires

  Irish NPE portfolio offloaded AIB Group is set to sell a non-performing loan portfolio in long-term...

  Market moves    22 February 2021

• Risk transfer round-up - 22 February

  CRT sector developments and deal news

  News    22 February 2021

• Galaxy securitisation finalised

  Alpha and Davidson Kempner sign deal

  Alpha Bank has signed a definitive agreement with Davidson Kempner with respect to its €10....

  News    22 February 2021

• SCI Start the Week - 22 February

  A review of securitisation activity over the past seven days

  MM CLO seminar this week Join SCI on Thursday 25 February for our second Middle Market CLO seminar...

  News    22 February 2021

• Small balance UK CMBS prepped

  Sector developments and company hires

  Small balance UK CMBS prepped Together Commercial Financial Services is marketing an unusual securi...

  Market moves    19 February 2021

• Private role?

  Benefits of tokenisation weighed

  As investment trends shift more towards private financings, tokenisation could play an important rol...

  News Analysis    19 February 2021

• Growing trend

  Third-party CRT arrangers gaining traction

  News    19 February 2021

• NDBI risk eyed

  Economic resilience bonds in the works

  Political risk and social volatility became headline news last month, with the storming of the US Ca...

  News Analysis    18 February 2021

• Forgive and forget

  Student loan forgiveness heralds widespread prepayment in student loan ABS, but is credit positive

  Some form of student loan forgiveness now looks likely to happen, and the effects upon the Federal F...

  News Analysis    18 February 2021

• 'Unique' CLN deal readied

  Sector developments and company hires

  ‘Unique’ CLN deal readied JPMorgan Chase Bank (JPMCB) is prepping the debut CLN...

  Market moves    17 February 2021

• Seasonal effects

  Servicer boost for Italian NPL collections

  Seasonality effects gave Italian non-performing loan collections a significant boost for the second...

  News    17 February 2021

• Maritime financing facility agreed

  Sector developments and company hires

  Maritime financing facility agreed Maritime and offshore alternative capital provider Fleetscape Ca...

  Market moves    16 February 2021

• MBIA litigation settled

  Sector developments and company hires

  MBIA litigation settled MBIA Insurance Corporation has entered into an agreement to settle the li...

  Market moves    15 February 2021

• Consumer SRT prints

  Santander finalises capital relief trade

  Santander has priced Santander Consumo Four, its latest full-stack capital relief trade. Backed by a...

  News    15 February 2021

• SCI Start the Week - 15 February

  A review of securitisation activity over the past seven days

  Last week's stories Constructive outlook AXA Investment Managers answers SCI's questions Fly...

  News    15 February 2021