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.
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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