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.


  • 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
  • CRE investor bulks out

    Company hires and sector developments

    CDX-linked ETF launched Tabula has launched a new ETF, dubbed Tabula European iTraxx Crossover...

    Market moves    5 March 2019
  • Line-up finalised

    CRT event to include two workshops

    The line-up for SCI’s 3rd Annual Risk Transfer & Synthetics Seminar on 12 March ha...

    News    5 March 2019
  • STS synthetics pending

    EBA to publish report by year-end

    The EBA is expected to publish a report on STS synthetic securitisations by year-end, which will the...

    News Analysis    1 March 2019
  • Downward drift

    Low default trend continues

    Global corporate defaults fell in 2018 in advanced markets and were stable in emerging markets. The...

    News    1 March 2019
  • New fund for CDS recruit

    Company hires and sector developments

    ABL acquisition Benefit Street Partners affiliate Business Development Corporation of America has a...

    Market moves    28 February 2019
  • Debuting duo

    New ILS peril, domicile introduced

    GC Securities has placed a pair of innovative catastrophe bonds. Insurance Australia Group&rsquo...

    News    27 February 2019
  • 'Long term solution needed'

    Day three from SFIG Vegas

    The last full day at SFIG Vegas was again abuzz with strong attendance and widespread optimism. On...

    News    27 February 2019
  • Lights, camera, securitisation

    Film rights ABS remains attractive to studios

    The increasingly short length of time which films remain in movie theatres for these days may be fru...

    News Analysis    27 February 2019
  • Structured finance 'well positioned' for downturn

    Second day at SFIG Vegas sees continued optimism

    Day two at SFIG Vegas saw a bountiful turnout of attendees, all looking to hear the latest on struct...

    News    26 February 2019
  • CLO manager shake-up

    Company hires and sector developments

    Derivatives continuity The US CFTC and the Bank of England have issued a joint statement aimed at r...

    Market moves    26 February 2019
  • Different strokes

    PACE prepayment volatility on the rise

    A new Morningstar Credit Ratings study reveals increased volatility and a generally accelerating tre...

    News    25 February 2019
  • Model behaviour?

    Accuracy of ILS loss predictions hinges on evolving models

    Actual losses in the ILS market may be broadly in line with predictions, but there are sectors with...

    News Analysis    25 February 2019
  • A strong start

    Day one at SFIG Vegas

    Moods appear to be running high at the start of SFIG Vegas 2019. Despite being only a half...

    News    25 February 2019
  • Maintaining flexibility

    Fiona Walden, vp, credit and financial lines at RenaissanceRe, answers SCI's questions

    Q: How and when did RenaissanceRe became involved in the securitisation market? A: We were set up 2...

    The Structured Credit Interview    22 February 2019
  • Restructuring incentive

    Greece unveils mortgage NPL boost

    The Greek government is working on a plan that aims to meet ECB non-performing loan reduction target...

    News Analysis    22 February 2019
  • Law firm boosts derivatives capability

    Company hires and sector developments

    CLO firm promotions Churchill has announced the promotion of Mat Linett, md, from deputy head of u...

    Market moves    22 February 2019
  • Tough stance

    ESMA insists on private securitisation disclosures

    On 31 January, ESMA published a document that amends its draft regulatory technical standards (RTS)...

    News Analysis    22 February 2019
  • CLO partnership launched

    Sector developments and company hires

    CDS trends discussed Mayer Brown has commented on trends in single-name CDS credit event determina...

    Market moves    21 February 2019
  • Stand-out performer

    Systematic role for structured credit

    Funds focused on structured credit were, as a whole, stand-out performers in 2018. Of the 50 US stru...

    News Analysis    21 February 2019
  • UK paper on the block

    European secondary ABS market update

    The European secondary ABS market has rallied since the beginning of the year. However, activity now...

    Market Reports    21 February 2019