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.

• CLO ESG impact assessed

  Sector developments and company hires

  ESG impact assessed The credit impact of environmental, social and governance (ESG) investment cri...

  Market moves    19 August 2019

• SCI Start the Week - 19 August

  A review of securitisation activity over the past seven days

  Transaction of the week CFO backed by PE portfolio (SCI 13 August) Nassau Alternative Investments...

  News    19 August 2019

• Whole biz downgrade announced

  Company developments and company hires

  Acquisitions Crescent Capital BDC is set to acquire Alcentra Capital Corp, a middle-market BDC. Th...

  Market moves    16 August 2019

• Consent challenges

  Transactions losing value without Libor fallback language

  Investors are working with an asset registry and communication platform to obtain noteholde...

  News    16 August 2019

• Brexit impact gauged

  UK ABS expected to withstand no-deal

  A no-deal Brexit scenario isn’t expected to significantly affect the economics of UK ABS t...

  News Analysis    16 August 2019

• Risk transfer round-up - 16 August

  CRT sector developments and deal news

  UBI Banca is rumoured to be prepping an SME and corporate SRT for 3Q19. The alleged transaction is r...

  News    16 August 2019

• Syncora Guarantee acquired

  Sector developments and company hires

  Syncora sale GoldenTree Asset Management entity Star Insurance Holdings is set to acquire Syncora H...

  News    15 August 2019

• NPL disposals inked

  Sector developments and company hires

  ABSF tender The Australian Office of Financial Management is inviting tender submissions for the p...

  Market moves    14 August 2019

• Tweaking tradition

  Dutch securitisation evolving across established sectors

  The Dutch securitisation market is seeing innovation and growth away from its traditional strong foc...

  News Analysis    13 August 2019

• STS mirage

  "Still no level playing field" despite regulation

  Despite the high bar that issuers must clear to achieve the STS designation on securitisations, the...

  News Analysis    12 August 2019

• SCI Start the Week - 12 August

  A review of securitisation activity over the past seven days

  SCI CRT awards Don't miss out on your chance to win: the submissions deadline for the inaugural SCI...

  News    12 August 2019

• Venture ABS prepped

  Horizon Technology Finance hits the market

  Horizon Technology Finance is marketing an ABS backed by secured liens on non-investment grade perfo...

  News    9 August 2019

• AM acquisition

  Sector developments and company hires

  Asset management acquisition Assured Guaranty US Holdings is set to acquire all of the outstanding...

  Market moves    9 August 2019

• Senior mezz eyed

  CRT issuers target asset managers

  Banks are targeting asset managers for the senior mezzanine tranches of dual-tranche capital relief...

  News Analysis    9 August 2019

• New ventures

  Asset manager building out structured credit strategies

  BlueBay is expanding its structured finance and CLO investment strategies.&nbs...

  News Analysis    9 August 2019

• Risk transfer round-up - 9 August

  CRT sector developments and deal news

  BNP Paribas is rumoured to be prepping a corporate capital relief trade for 3Q19. The lender&rsq...

  News    9 August 2019

• NPL disposals sealed

  Two banks offload Italian loan portfolios

  Two disposals of Italian non-performing and performing loans (NPLs) originated by Unicredit and ING...

  News    8 August 2019

• Branching out

  UK marketplace lender brings US deal

  Funding Circle Holdings is in the market with its first ABS collateralised by loans made to SMEs inc...

  News    7 August 2019

• Alt credit co-head hired

  Company hires and sector developments

  Alt credit co-head nabbed Ares has hired Joel Holsinger to its credit group as c...

  Market moves    7 August 2019

• JV agreed

  Intesa readies UTP securitisation

  Intesa San Paolo has reached an agreement with Prelios that involves the securitisation of a &eu...

  News    7 August 2019

• Whole biz debut double

  Early learning, pet supply franchises securitised

  Two US whole business securitisations are marketing, representing debut transactions from both firms...

  News    6 August 2019