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.

• Positive prospects?

  CRE tops Stage Two allocations

  Commercial real estate loans were allocated the largest share of Stage Two classifications, accordin...

  News    8 December 2021

• Landmark SRT inked

  Wealth management unit completes synthetic ABS

  News    8 December 2021

• Flowers among weeds

  CMBS yields value to canny buyers despite distress

  In the first of a series of interviews with SCI, investment managers discuss where they have seen mo...

  Talking Point    8 December 2021

• CRT bonanza

  Record 2021 origination and Fannie's return to drive banner 2022 for CRT

  Next year will see record GSE CRT issuance of around $20bn, around $6bn higher than 2021, predicts P...

  News    8 December 2021

• ESG data coverage scrutinised

  Sector developments and company hires

  The European Leveraged Finance Association (ELFA) has analysed coverage by three ESG data vendors fo...

  Market moves    7 December 2021

• Digital ABS debuts

  Fully blockchain-based securitisation completed

  German fintech Cadeia has completed the first-ever fully blockchain-based corporate loan securitisat...

  News    7 December 2021

• UK SME return

  Lloyds completes capital relief trade

  News    7 December 2021

• Covid-19: Lessons for the CMBS market

  Iona Misheva, partner at Allen & Overy, explores the lessons that the pandemic provided for...

  Talking Point    6 December 2021

• SCI Start the Week - 6 December

  A review of SCI's latest content

  Last week's news and analysis Enhanced value Securent answers SCI's questions ...

  News    6 December 2021

• Winding down

  European ABS/MBS market update

  The European ABS/MBS primary market appears to have begun winding down for year-end this week. With...

  News    3 December 2021

• Mespil refinanced

  BOI completes leveraged loan CRT

  News    3 December 2021

• ESG countdown

  ECB climate stress tests pending

  The ECB’s pending climate stress tests are expected to offer some answers around the data...

  News Analysis    3 December 2021

• Bosphorus CLOs transferred

  Sector developments and company hires

  Bosphorus CLOs transferred Cross Ocean Adviser, an affiliate of Cross Ocean Partners Management, h...

  Market moves    2 December 2021

• SRT chronicle: part three

  In the final instalment of a three-part series on bank risk transfer transactions, Olivier Renault* ...

  We have seen in part one of this series how far the SRT sector has developed in the past 10 years fr...

  Talking Point    2 December 2021

• RFC issued on ABS tax policies

  Sector developments and company hires

  RFC issued on ABS tax policies HMRC is seeking feedback on two draft statutory instruments: the Tax...

  Market moves    1 December 2021

• GACS pair print

  Mixed NPE pool debuts

  A pair of Italian non-performing loan securitisations have closed over the past week that are expect...

  News    30 November 2021

• BWIC workgroup formed

  Sector developments and company hires

  Mortgage Industry Standards Maintenance Organization (MISMO) has formed a BWIC data development work...

  Market moves    30 November 2021

• Restructurings eyed

  Real estate and hospitality assets targeted

  Arrow Global’s new corporate restructuring unit in Portugal is expected to focus on the re...

  News Analysis    30 November 2021

• Ramp-up continues

  Barclays completes capital relief trade

  News    29 November 2021

• SCI Start the Week - 29 November

  A review of SCI's latest content

  Last week's news and analysis Advanzia advances German credit card ABS debuts Partial...

  News    29 November 2021

• Slowly widening

  European ABS/MBS market update

  With investors already looking ahead to 2022, the European ABS/MBS primary market is slowly thinning...

  News    26 November 2021