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.


  • Iberian RMBS investment disclosed

    Sector developments and company hires

    Iberian RMBS investment disclosed The EIB has disclosed that it invested €50m in UCI&r...

    Market moves    12 May 2021
  • Bad weather bonds

    Utilities to make use of ABS to rebuild after extreme weather

    This year has already seen two utility recovery charge (URC) ABS transactions in the US and, say ana...

    News Analysis    12 May 2021
  • STS BTL RMBS prepped

    Sector developments and company hires

    STS BTL RMBS prepped Domivest is in the market with the first-ever STS buy-to-let RMBS. Dubbed Domi...

    Market moves    11 May 2021
  • Geographical divergence

    CSEE moratoria more likely to underperform

    EU banks set aside large provisions in 2020 in anticipation of Covid-induced higher default rates, b...

    News Analysis    11 May 2021
  • Risk transfer round-up - 11 May

    CRT sector developments and deal news

    Bank of Montreal has called Muskoka Series 2020-1. The US$132m financial guarantee was executed in A...

    News    11 May 2021
  • Hertz reorganisation proposals weighed

    Sector developments and company hires

    Hertz reorganisation proposals weighed Hertz has determined that a revised proposal to provide eq...

    Market moves    10 May 2021
  • Mortgage-backed SRT priced

    Credit Suisse executes Elvetia refinancing

    News    10 May 2021
  • SCI Start the Week - 10 May

    A review of securitisation activity over the past seven days

    Last week's stories Niche exposure CFE Finance answers SCI's questions NPL rebound? Secured...

    News    10 May 2021
  • Alternative support

    Infrastructure ABS boosts Italian direct lending

    Further details have emerged regarding the debut syndication of an Italian infrastructure loan via a...

    News    7 May 2021
  • Green railcar ABS debuts

    Sector developments and company hires

    Green railcar ABS debuts Trinity Industries has priced its inaugural green railcar ABS, following t...

    Market moves    7 May 2021
  • Niche exposure

    CFE Finance business development manager Duccio Duranti and CFE Finance UK md Giuseppe Leppi answer ...

    Q: How and when did CFE Finance become involved in the securitisation market? DD: CFE Finance was f...

    The Structured Credit Interview    7 May 2021
  • NPL rebound?

    Secured loan sales set for 2022 return

    European secured loan sales witnessed their sharpest contraction last year as the coronavirus pandem...

    News    6 May 2021
  • Tight pricing

    Standard Chartered prints CRT

    Standard Chartered has finalised a US$180m CLN that references a US$2bn portfolio of around 130 US a...

    News    5 May 2021
  • Balancing act

    Alexander Batchvarov, md, head of international structured finance research at BofA Securities, disc...

    Q: How would you describe European investor appetite for esoteric securitisations currently? A: We...

    Talking Point    30 April 2021
  • Greek investment partnership inked

    Sector developments and company hires

    Greek investment partnership inked Mount Street Group has formed a strategic partnership in Greec...

    Market moves    29 April 2021
  • Vertical structure

    Rare Spanish NPL ABS closed

    Morgan Stanley last month closed a rare Spanish non-performing loan securitisation, dubbed Retiro Mo...

    News Analysis    29 April 2021
  • Irish RPL refi prepped

    Sector developments and company hires

    Irish RPL refi prepped A refinancing of two Irish reperforming RMBS - European Residential Loan Sec...

    Market moves    28 April 2021
  • Marco Polo returns

    Credit Agricole finalises landmark SRT

    News    28 April 2021
  • Funded reinsurance roll-out

    Pass-through longevity swap completed

    Prudential Insurance Company of America’s (PICA) international reinsurance business last m...

    News    28 April 2021
  • APAC ESG expansion eyed

    Sector developments and company hires

    APAC ESG expansion eyed Moody’s is set to expand its Singapore office with the aim of s...

    Market moves    27 April 2021
  • Risk transfer round-up - 27 April

    CRT sector developments and deal news

    Credit Suisse has redeemed and delisted two Magnolia Finance Five transactions. Magnolia Finance Fiv...

    News    27 April 2021