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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.


  • Funding trade

    Trade finance fund utilises securitisation technology and assets

    Finance securitisation specialist Channel Capital Advisors has launched its first trade finance fund...

    News    25 July 2019
  • Making an impact

    Debut impact ABS provides finance to EM microfinance & SME lenders

    ResponsAbility Investments has closed its debut US$175m impact securitisation, backed by loans to 26...

    News Analysis    25 July 2019
  • Risk transfer round-up - 24 July

    CRT sector developments and deal news

    Banca Popolare dell ‘Alto Adige is believed to be readying a capital relief trade that is...

    News    24 July 2019
  • Italian renaissance?

    Spike in new issuance supported for now

    The uptick in Italian ABS/MBS primary issuance in the past month or so gives the impression of a lon...

    News Analysis    24 July 2019
  • Esoteric ABS head announced

    Sector developments and company hires

    Esoteric ABS head named MUFG has hired Keith Allman as md and head of esoteric ABS, effective Augu...

    Market moves    23 July 2019
  • First-mover disadvantage

    NPL ABS downgrade structurally specific

    Scope Ratings has downgraded Elrond NPL 2017 after a performance review. The move appears to be a de...

    News    23 July 2019
  • Rights firm hits play on ABS debut

    Unusual securitisation backed by music rights collateral

    SESAC, a music rights firm acquired by Blackstone in 2017, is marketing an inaugural whole-business...

    News    23 July 2019
  • ABS head named

    Company hires and sector developments

    Euro ABS head appointed Santander has hired Francesco Dissera as head of continential Europe, secu...

    Market moves    22 July 2019
  • Revving up

    Italian auto SRT completed

    BNP Paribas has completed a €950m significant risk transfer transaction of Italian auto loa...

    News    22 July 2019
  • Offshore investment in Chinese ABS soars

    Investors find relative value in second largest ABS market

    Foreign investment in the Chinese ABS market is increasing exponentially, as routes to entr...

    News Analysis    22 July 2019
  • Co-ceo named

    Sector developments and company hires

    Co-ceo named Värde Partners has named Ilfryn Carstairs as co-ceo, alongside co-founder Ge...

    Market moves    19 July 2019
  • Squaring the circle

    CRT issuers struggling with borrower anonymity

    Capital relief trade issuers are attempting to anonymise loan-by-loan data in transactions, while si...

    News Analysis    19 July 2019
  • Secondary pick-up?

    Aircraft ABS E-notes proliferate, despite residual value risks

    Equity participation in aircraft ABS is picking up, following the execution of transactions with bro...

    News Analysis    19 July 2019
  • Risk transfer round-up - 19 July

    CRT sector developments and deal news

    Monte dei Paschi di Siena is rumoured to be prepping an Italian SME significant risk transfer transa...

    News    19 July 2019
  • Operational issues

    CRT key steps outlined

    The operational issues involved in prepping a risk transfer transaction are often overlooked. Indeed...

    News Analysis    19 July 2019
  • Czech mate

    SME CRT inked

    The EIB, the EIF and Česká spořitelna (ČS) have inked a capita...

    News    18 July 2019
  • Additional resources for disclosure published

    Sector developments and company hires

    Agri-investing appointment Arable Capital Partners has appointed Matt Reus a vp in the Bellevue, W...

    Market moves    18 July 2019
  • Bank fined over MBS trading failures

    Company hires and sector developments

    Agency heads announced Morningstar Credit Ratings (MCR) has named Erin Stafford as head of the com...

    Market moves    17 July 2019
  • Growth phase

    Debut trade receivables deal launched, expansion eyed

    Stenn International has launched a debut US$200m securitisation with Natixis, backed by internationa...

    News Analysis    17 July 2019
  • Fund founder guilty of fraud

    Company hires and sector developments

    African solar plan approved The African Development Bank Group has approved an innovative multinat...

    Market moves    15 July 2019
  • Green investment partnership launched

    Company hires and sector developments

    Green investment Amundi and the EIB have signed a partnership to launch the Green Credit Continuum...

    News    12 July 2019