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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.


  • CLO firm bulks up

    Company hires and sector developments

    CLO firm bulks up Adrienne Dale has joined MidOcean Credit Partners a portfolio manager for its CL...

    Market moves    9 September 2019
  • SCI Start the Week - 9 September

    A review of securitisation activity over the past seven days

    Transaction of the week The EIF has launched two new funding initiatives to support SMEs in Europe,...

    News    9 September 2019
  • ILS deputy head hired

    Company hires and sector developments

    Blockchain standardisation steps taken The standardisation of blockchain technology, which the Int...

    Market moves    6 September 2019
  • SME initiatives inked

    EIF launches further guarantee programmes for businesses across Europe

    The EIF has launched two new funding initiatives to support SMEs in Europe, including a first-of-its...

    News    6 September 2019
  • Ceo appointed

    Sector developments and company hires

    Analytics head nabbed Merion Square Capital has hired Jeff Fraser as head of analytics, based at t...

    Market moves    5 September 2019
  • STS success?

    Market warms to STS, but threats hover on the horizon

    While STS lead to a dampening effect on ABS issuance at the start of the year, it is starting to bri...

    News    5 September 2019
  • Going concern?

    Synthetics could help address UTP burden

    Synthetic securitisation is being put forward as one way of proactively addressing the unlikely-to-p...

    News Analysis    5 September 2019
  • Structured credit vets nabbed

    Sector developments and company hires

    EBA makes STS digital move The EBA has announced that it has added the STS Regulation to its onlin...

    Market moves    4 September 2019
  • Tesco portfolio disposal sealed

    Company developments and sector hires

    Auto deal debut Oodle Financial Services is marketing an inaugural static cash securitisation of a...

    Market moves    3 September 2019
  • RAIT sale

    Company developments and sector hires

    Aussie bank secures warehouse line Yellow Brick Road (YBR), an Australian non-bank lender, has rec...

    Market moves    2 September 2019
  • SCI Start the Week - 2 September

    A review of securitisation activity over the past seven days

    Market commentary A new Fitch study shows that there is a wide range in trustee reported market val...

    News    2 September 2019
  • Strong performance

    Refi PSL ABS upgraded

    Moody's has lowered its expected default rate for typical unseasoned refinancing private stu...

    News    30 August 2019
  • Regulatory boost

    Italian SRT issuance picks up

    Italian capital relief trades are experiencing a strong pick-up in issuance this year as regulatory...

    News Analysis    30 August 2019
  • Portuguese ABS framework updated

    Sector developments and company hires

    Portuguese ABS framework updated A new regulation has been introduced in Portugal providing for th...

    Market moves    30 August 2019
  • NPL relief

    ECB extends provisioning calendar

    The ECB is set to align its supervisory expectations regarding the provisioning of new non-performin...

    News Analysis    30 August 2019
  • Esoteric opportunities

    Structured solutions to address corporate risk transfer needs

    The newly-formed CAC Specialty (SCI 21 August) is seeking to capitalise on the convergence of the in...

    News    30 August 2019
  • Structured credit head steps down

    Company hires and sector developments

    BUMF 6 claim filed Business Mortgage Finance 6 has issued a claim against Roundstone Technologies...

    Market moves    29 August 2019
  • Back to work

    UK deal flow restarts ahead of expected busy months ahead

    Oak No. 3 has become the first ‘post-summer’ UK ABS/MBS deal to price. It is exp...

    News Analysis    29 August 2019
  • Risk transfer round-up - 28 August

    CRT sector developments and deal news

    Credit Suisse has called two transactions from its Magnolia Finance V programme. The transactions we...

    News    28 August 2019
  • Ceo replaced

    Sector developments and company hires

    New ceo appointed Oaktree Specialty Lending has announced that ceo and cio Edgar Lee has resigned...

    Market moves    27 August 2019
  • Broker charged over mispricing

    Sector developments and company hires

    Broker charged over mispricing The US SEC has charged New York-based broker-dealer AOC Securities...

    Market moves    23 August 2019