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.


  • Risk retention for Japan?

    Sector developments and company hires

    ILS Sarah Demerling has joined Walkers Bermuda as a partner in the firm's corporate, finan...

    Market moves    16 January 2019
  • STS-compliant ABS issuance to be 'higher than expected'

    Lack of certainty continues around areas of Securitisation Regulation

    The EU Securitisation Regulation came into force as of 1 January this year, despite several parts of...

    News Analysis    16 January 2019
  • Agency launches new Euro office

    Company hires and sector developments

    Europe Alantra has hired James Fadel as md. He was previously head of structured finance advisory...

    Market moves    14 January 2019
  • SCI Start the Week - 14 January

    A review of securitisation activity over the past seven days

    Transaction of the week BBVA has completed an innovative transaction that synchronises credit event...

    News    14 January 2019
  • Risk transfer round-up - 11 January

    CRT sector developments and deal news

    The fourth quarter of 2018 saw a slew of risk transfer deals typical of year-end issuance (SCI 21 De...

    News    11 January 2019
  • Credit events synchronised

    BBVA completes innovative IFRS 9 hedge

    BBVA has completed an innovative transaction that synchronises credit events with IFRS 9 lifetime ex...

    News Analysis    11 January 2019
  • US firms see flurry of hires

    Sector developments and company hires

    US Bay Crest Partners has bolstered its fixed income business with a trio of senior hires: Tadeusz...

    Market moves    10 January 2019
  • Mezz opportunity

    Insurer interest in risk transfer on the rise

    The facility recently inked by Texel Finance and Liberty Specialty Markets (SCI 9 November 2018) sig...

    News Analysis    10 January 2019
  • Risk-sharing boost

    Cajamar SRT sets tone for standardised banks

    BCC Grupo Cajamar has completed a €972.1m Spanish true sale significant risk transfer trans...

    News Analysis    9 January 2019
  • UK tax partner pinched

    Sector developments and company hires

    UK Hunton Andrews Kurth has recruited David Klass as a partner in its London office. Klass brings...

    Market moves    8 January 2019
  • Freddie Mac launches debut reinsurance deal

    Company hires and sector developments

    Acquisitions doBank has acquired 85% of NPL servicer Altamira Asset Management from entities affil...

    Market moves    7 January 2019
  • SCI Start the Week - 7 January

    A review of securitisation activity over the past seven days

    Transaction of the week Santander has launched an unusual synthetic securitisation of auto loans,...

    News    7 January 2019
  • Banca Carige placed into temporary administration

    NPL disposals 'could be accelerated'

    Banca Carige has been placed into temporary administration by the European Central Bank (ECB) follow...

    News Analysis    4 January 2019
  • Pair promoted

    Sector developments and company hires

    UK TwentyFour Asset Management has appointed two new partners from within its portfolio management...

    Market moves    4 January 2019
  • Global finance partner hired

    Sector developments and company hires

    NPL transactions IFIS NPL, has purchased an NPL portfolio totalling €1.16bn in gross book...

    Market moves    2 January 2019
  • Landmark consumer SRT launched

    Santander completes synthetic auto loan ABS

    Santander has launched an unusual synthetic securitisation of auto loans, dubbed Santander...

    News Analysis    2 January 2019
  • Ex-LSE ceo hired

    Sector developments and company hires

    EMEA CQS has appointed Xavier Rolet, previously ceo of the London Stock Exchange, as ceo. Michael H...

    Market moves    24 December 2018
  • Synthetic slew

    CRT issuances hit before year-end

    A slew of synthetic securitisations have hit the market before year-end. The risk transfer issuances...

    News    21 December 2018
  • Inaugural post-crisis CLO prepped

    Sector developments and company hires

    CLO manager comeback AIG is marketing its first BSL CLO since the financial crisis, totalling US$5...

    Market moves    21 December 2018
  • Disclosure draft not endorsed

    EC refuses to endorse draft technical standards

    The European Commission has stated that it only intends to endorse the draft technical stan...

    News    20 December 2018
  • Consumer SRT completed

    Santander opts for true sale format

    Santander last month priced Kimi 7, a €665.3m true sale significant risk transfer transacti...

    News Analysis    19 December 2018