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.


  • 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
  • Private credit firm launched

    Sector developments and company hires

    Firm launch AGL Credit Management has launched, with Peter Gleysteen serving as ceo and cio, and T...

    Market moves    18 March 2019
  • Latest podcast now available

    CRT themes and a Dutch RMBS first discussed

    In this month's podcast, we explore some interesting themes within the CRT market: namely,&a...

    News    15 March 2019
  • GACS alternative?

    Investor group completes NPL securitisation

    A group of investors led by Värde, Guber and Barclays have acquired an approximately &e...

    News    15 March 2019
  • Benchmark Sonia deal prepped

    Unique UK RMBS transaction adds momentum to IBOR transition

    The first third party hedged UK RMBS with Sonia-linked notes has been prepped by Principali...

    News    15 March 2019
  • Inaugural online auto ABS prepped

    Sector developments and company hires

    Online auto ABS debuts Carvana, an online platform for buying used cars launched in 2012 by DriveT...

    Market moves    15 March 2019
  • Servicing strength

    Debut Spanish NPL securitisations anticipated

    The Spanish non-performing loan market is reaching maturation, with the first securitisations from t...

    News Analysis    15 March 2019
  • 'Steady stream' of STS deals needed

    Market reacts positively to inaugural STS ABS

    The market has generally reacted positively to the news that Volkswagen’s VCL 28 auto leas...

    News    14 March 2019
  • Mixed performance

    Semi-annual NPL securitisation update debuts

    Moody’s has published the first in a series of semi-annual updates on European non-perform...

    News    14 March 2019
  • Formative stages

    Greek NPL momentum continues

    Of the investors surveyed in Ashurst’s latest global non-performing loan report, 39% state...

    News    13 March 2019
  • Auto ABS looks set to receive first STS verification

    Sector developments and company hires

    Auto ABS looks set to receive first STS verification The first European ABS that looks se...

    Market moves    13 March 2019
  • UMBS trades to be accepted

    Sector developments and company hires

    UMBS trades to be accepted In support of the Single Security Initiative, Fannie Mae will begin acc...

    Market moves    12 March 2019
  • Bright spot

    European ABS market update

    De Lage Landen’s newly mandated UK equipment lease ABS represents a bright spot in an othe...

    Market Reports    12 March 2019
  • R-PACE rulemaking proposals outlined

    Sector developments and company hires

    Credit line secured Foundation Home Loans has entered into a new £350m warehouse credit...

    Market moves    11 March 2019
  • Servicing boost

    Intrum augments Greek presence

    Intrum is planning a purchase of a Greek debt servicing platform, which will act as a springboard fo...

    News    8 March 2019
  • Merger opposed

    Company hires and sector developments

    Astra case development Judge Jennifer Frisch of the Minnesota District Court, Second Judicial Dist...

    Market moves    8 March 2019
  • Isolation issues

    DLT legal, operational challenges highlighted

    A number of legal and operational issues still need to be resolved before blockchain securitisations...

    News Analysis    8 March 2019
  • Stronger tone

    European ABS spreads tighten but supply muted

    There is a stronger tone in the European ABS market overall and there has been spread tightening acr...

    Market Reports    8 March 2019
  • CDS reforms proposed

    Company hires and sector developments

    Australia Mortgage House has hired Steven Mixter as head of securitisation and structured finance....

    Market moves    7 March 2019
  • Creative approach

    Definition of CRT criteria evolving

    As the drivers for banks to pursue risk transfer transactions have broadened over the last few years...

    News Analysis    7 March 2019
  • Deleveraging deal

    Bari SRT performance consistent with expectations

    Scope has determined that the performance of Banca Popolare di Bari’s last significant ris...

    News    6 March 2019