Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London
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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.


  • Independent director hired

    Company hires and sector developments

    Europe Prytania Asset Management has appointed Eric Felton as independent director. Most recently,...

    Market moves    5 April 2019
  • Positive outlook

    UTP securitisation prospects improve, despite challenges

    Future issuance of unlikely-to-pay (UTP) securitisations depends on the resolution of two challenges...

    News Analysis    5 April 2019
  • CEO appointed

    Company hires and sector developments

    CEO appointed DFG Investment Advisers has hired Oliver Wriedt as ceo. The firm is also unifying it...

    Market moves    4 April 2019
  • Risk transfer round-up - 3 April

    CRT sector developments and deal news

    Deutsche Bank has completed its first capital relief trade for the year. Dubbed CRAFT 2019-1, the US...

    News    3 April 2019
  • Obstacles remain

    European Parliament postpones NPL trading vote

    The European Parliament on Monday (1 April) postponed a vote on a non-performing loan secondary mark...

    News    3 April 2019
  • Positive sentiment?

    European ABS market update

    European ABS primary issuance is gaining momentum, as the second quarter begins. Indeed, the variety...

    Market Reports    2 April 2019
  • GSE reforms proposed

    Sector developments and company hires

    Debt service reserve guarantee provided Assured Guaranty (Europe) plc (AGE) has issued a &poun...

    Market moves    1 April 2019
  • Irish BTL RMBS launched

    Company hires and sector developments

    Irish BTL RMBS launched Bank of Ireland has mandated a new Irish buy-to-let RMBS deal. Du...

    Market moves    29 March 2019
  • CEO appointed

    Sector developments and company hires

    CEO appointed Curtis Arledge has joined Mariner Investment Group as chairman and ceo. In addition...

    Market moves    28 March 2019
  • 'Constant demand'

    UK firms hiring across range of SF roles

    Hiring in the UK structured finance space has been buoyant in the last 12 months, with recruitment a...

    News Analysis    28 March 2019
  • Picking up pace

    European ABS market update

    European ABS secondary market activity has been relatively subdued so far this week. However, the pr...

    Market Reports    28 March 2019
  • CRT credit event

    Company hires and sector developments

    CRT credit event HSBC’s Metrix series 2015-1 CLN has suffered another credit event. The...

    Market moves    27 March 2019
  • Symbiotic relationship?

    Marketplace lending enters the mainstream

    The online lending sector has become mainstream, forcing marketplace platforms to better differentia...

    News Analysis    27 March 2019
  • Granite refinancing

    Sector developments and company hires

    Europe Muzinich & Co has hired Laurence Kubli as structured credit specialist with immedia...

    Market moves    25 March 2019
  • Purchase option to be exercised

    Sector developments and company hires

    EMEA Capzanine has appointed Renaud Tourmente as head of business development, effective from 6 M...

    Market moves    22 March 2019
  • Goals aligned

    Insurers target dual-tranche CRTs

    Insurance firms are targeting mezzanine tranches in dual-tranche capital relief trades as banks warm...

    News Analysis    22 March 2019
  • GACS successor

    New Italian NPL scheme launched

    The Italian government has introduced a successor to the GACS scheme. The replacement guarantee feat...

    News    22 March 2019
  • Control pursued

    Indian distressed debt unit established

    Deutsche Bank is setting up an asset reconstruction company (ARC) in India to buy and sell restructu...

    News    21 March 2019
  • Majority stake acquired

    Sector developments and company hires

    Balance sheet normalisation The US Fed has confirmed it intends to continue to allow its holdings o...

    Market moves    21 March 2019
  • ERM debut

    Seniors Money preps its return

    The first publicly rated securitisation of Irish and Spanish equity release mortgages (ERMs) has hit...

    News    20 March 2019
  • Relative value

    JFSA risk retention rules shift focus

    The Japanese Financial Services Agency (JFSA) has published its final rules on regulatory capital re...

    News    20 March 2019