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.

• SCI Start the Week - 13 July

  A review of securitisation activity over the past seven days

  Last week's stories Arch restarts MILNs Relaunched Bellemeade Re 2020-1 priced Collection boo...

  News    13 July 2020

• OC ratios examined

  Sector developments and company hires

  OC ratios examined Drivers behind and expectations for European CLO OC ratios have been examined in...

  Market moves    10 July 2020

• Risk transfer round up - 10 July

  CRT sector developments and deal news

  Commerzbank is rumoured to be readying a corporate capital relief trade that is expected to close in...

  News    10 July 2020

• Spanish CP vehicle formed

  Sector developments and company hires

  Spanish CP vehicle formed ODF Energía has registered on MARF the first issuance of comme...

  Market moves    9 July 2020

• Restructuring events?

  Uncertainty over CRE values weighs on CRTs

  Restructuring credit events in capital relief trades backed by commercial real estate loans will lik...

  News Analysis    9 July 2020

• Pricing recalibration

  NPL ABS market growth pending?

  The EBA’s opinion (SCI 24 October 2019) and more recently the Basel Committee’s...

  News Analysis    9 July 2020

• Polish SRT inked

  Santander completes capital relief trade

  Santander has completed a synthetic securitisation of Polish leasing receivables with the EIF. The t...

  News    9 July 2020

• CQS portfolio refinanced

  Sector developments and company hires

  CQS portfolio refinanced AnaCap Financial Partners has acquired and refinanced a portfolio of sal...

  Market moves    8 July 2020

• Collection boost?

  NPL ABS performance remains volatile

  May registered higher collection volumes than April for Italian non-performing loan securitisations,...

  News    7 July 2020

• Positive signs for CLOs

  Sector developments and company hires

  Positive signs for CLOs US CLO manager metrics have begun to improve or stabilise, according to JPM...

  Market moves    7 July 2020

• Volcker revision impact modest

  Sector developments and company hires

  Volcker revision impact modest The impact of the changes made to the Volcker Rule (SCI 26 June) wil...

  Market moves    6 July 2020

• Risk transfer round-up - 3 July

  CRT sector developments and deal news

  Details have emerged of three corporate capital relief trades issued by Barclays last month. The ris...

  News    3 July 2020

• Support measures

  Guarantee programmes hinder SME ABS comparability

  European SME ABS comparability is being hindered by the diverging terms and conditions of guaranteed...

  News Analysis    3 July 2020

• Spanish SRT inked

  BBVA launches capital relief trade

  BBVA has completed an €87m mezzanine guarantee with the EIF. Dubbed Vela Four, the transact...

  News Analysis    3 July 2020

• Consistently attractive CMBS

  CMBS is still the TALF favourite, but overall take-up could increase

  Some 58% of loans requested under TALF 2.0 during the first subscription period, or $145m, were for...

  News    2 July 2020

• Fast amortisation

  SSPAIN deleveraging highlighted

  Scope Ratings has published a monitoring report for Santander’s 2019 US auto significant r...

  News    2 July 2020

• Consumer considerations

  Borrower relief aids performance

  The downward trend of 30-plus delinquency rates for US marketplace lending, auto and credit cards co...

  News    1 July 2020

• Risk transfer round-up - 1 July

  CRT sector developments and deal news

  NatWest is rumoured to be readying a capital relief trade backed by mid-market corporate loans for 3...

  News    1 July 2020

• Tentative TALF 2.0

  The next TALF subscription date is July 6, but no fireworks expected

    The second TALF 2.0 subscription period begins on July 6, and it is expected to be even...

  News Analysis    26 June 2020

• Structuring negotiations

  CRT origination trends evolving

  Investors appear to be able to extract more than they used to during structuring negotiations for ca...

  News Analysis    26 June 2020

• Investment democratisation

  Stan Perromat, co-founder of Privatam, answers SCI's questions

  Q: How and when did Privatam become involved in the securitisation market? A: Privatam was founded...

  The Structured Credit Interview    25 June 2020