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.


  • Doubling up

    Record year anticipated for the EIF

    The bulk of European SME capital relief trades in 1H20 were public, with the EIF a particularly acti...

    News Analysis    22 September 2020
  • SCI Start the Week - 21 September

    A review of securitisation activity over the past seven days

    REMINDER: SCI CRT Awards The submissions period for the 2020 SCI CRT Awards is now open. The qualif...

    News    21 September 2020
  • Tech crazy

    Securitizations of tech assets finding favour in Covid world

    Securitizations of technology assets are proving popular with US investors in the Covid marketplace,...

    News Analysis    18 September 2020
  • Pagaya on hiring spree

    Sector developments and company hires

    Pagaya brings in new blood Pagaya, the data-driven asset manager, has made five key hires across a...

    Market moves    17 September 2020
  • SYME securitisation underway

    Sector developments and company hires

    SYME securitisation underway Supply@ME Capital (SYME) reports that it has received offers, subjec...

    Market moves    11 September 2020
  • Volksbank debuts

    Delayed Italian SRT inked

    Volksbank has completed a financial guarantee with the EIF and the EIB that references a static &...

    News    11 September 2020
  • Auto opportunities

    Euro residual values holding up

    The European second-hand car market has been relatively strong since lockdown ended, supporting auto...

    News    11 September 2020
  • APAC SRTs eyed

    Balance sheet optimisation in focus

    Asia Pacific banks are eyeing synthetic securitisations to optimise their balance sheets and as Base...

    News Analysis    11 September 2020
  • Multi-level Libor exposure eyed

    Sector developments and company hires

    Multi-level Libor exposure eyed Japanese securitisations with exposure to Libor on multiple level...

    Market moves    9 September 2020
  • Risk transfer round-up - 9 September

    CRT sector developments and deal news

    Commerzbank is rumoured to have significantly upsized a corporate and SME significant risk transfer...

    News    9 September 2020
  • Euro CLO payment mismatch grows

    Sector developments and company hires

    Euro CLO payment mismatch grows The payment frequency mismatch between underlying loans and Europea...

    Market moves    8 September 2020
  • ILS burden eased

    Trapped capital securitisation debuts

    Bermuda-based ILS Capital Management has completed a US$57m first-of-its-kind trapped capital securi...

    News    8 September 2020
  • SCI Start the Week - 7 September

    A review of securitisation activity over the past seven days

    SCI CRT Awards The submissions period for the 2020 SCI CRT Awards is now open. The qualifying perio...

    News    7 September 2020
  • Reporting template RTS published

    Sector developments and company hires

    Reporting template RTS published Seven Commission Delegated and Implementing Regulations comprising...

    Market moves    4 September 2020
  • Liquidity boost

    Piraeus taps Intrum

    Piraeus Bank and Intrum have signed an agreement under which Intrum will acquire 30% of the junior a...

    News    4 September 2020
  • Risk transfer round-up - 4 September

    CRT sector developments and deal news

    Intesa Sanpaolo is rumoured to be readying a corporate capital relief trade from its GARC programme...

    News    4 September 2020
  • CMBS cure rates eyed

    Sector developments and company hires

    CMBS cure rates eyed August US CMBS remittance data shows declining 30-plus day delinquency rates,...

    Market moves    3 September 2020
  • Negative rating actions tallied

    Sector developments and company hires

    Negative rating actions tallied Fitch reports that global structured finance negative rating action...

    Market moves    2 September 2020
  • EGF expression of interest launched

    Sector developments and company hires

    EGF expression of interest launched The EIF has issued a call for expression of interest in partici...

    Market moves    1 September 2020
  • Seeking stability

    Stimulus complicating SME SRT analysis

    Coronavirus-related stimulus schemes are complicating the analysis of European SME significant risk...

    News Analysis    1 September 2020
  • Risk transfer round-up - 28 August

    CRT sector developments and deal news

    BNP Paribas is rumoured to be prepping its fifth corporate capital relief trade from the Resonance p...

    News    28 August 2020