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.

• Consistently attractive CMBS

  CMBS is still the TALF favourite, but overall take-up could increase

  Some 58% of loans requested under TALF 2.0 during the first subscription period, or $145m, were for...

  News    2 July 2020

• Fast amortisation

  SSPAIN deleveraging highlighted

  Scope Ratings has published a monitoring report for Santander’s 2019 US auto significant r...

  News    2 July 2020

• Consumer considerations

  Borrower relief aids performance

  The downward trend of 30-plus delinquency rates for US marketplace lending, auto and credit cards co...

  News    1 July 2020

• Risk transfer round-up - 1 July

  CRT sector developments and deal news

  NatWest is rumoured to be readying a capital relief trade backed by mid-market corporate loans for 3...

  News    1 July 2020

• Tentative TALF 2.0

  The next TALF subscription date is July 6, but no fireworks expected

    The second TALF 2.0 subscription period begins on July 6, and it is expected to be even...

  News Analysis    26 June 2020

• Structuring negotiations

  CRT origination trends evolving

  Investors appear to be able to extract more than they used to during structuring negotiations for ca...

  News Analysis    26 June 2020

• Investment democratisation

  Stan Perromat, co-founder of Privatam, answers SCI's questions

  Q: How and when did Privatam become involved in the securitisation market? A: Privatam was founded...

  The Structured Credit Interview    25 June 2020

• Subprime auto performance eyed

  Sector developments and company hires

  Subprime auto performance eyed Davis & Gilbert’s latest Credit Chronometer subp...

  Market moves    25 June 2020

• RFC issued on NPL ABS treatment

  Sector developments and company hires

  RFC on NPL ABS treatment The Basel Committee has published a technical amendment in connection with...

  Market moves    24 June 2020

• NPL platform launched

  Debitos announces doValue partnership

  DoValue has established an online NPL trading platform dubbed doLook, via an exclusive partnership i...

  News    24 June 2020

• QM price-based approach mooted

  Sector developments and company hires

  QM price-based approach mooted The CFPB has issued two notices of proposed rulemaking (NPRMs) to ad...

  Market moves    23 June 2020

• Impact SRTs eyed

  Newmarket launches asset management business

  Newmarket has launched its asset management business, which will focus on the nexus of structured so...

  News Analysis    23 June 2020

• MILN market set to reopen

  Sector developments and company hires

  MILN market set to reopen Arch has returned to the market with Bellemeade Re 2020-1, after it was...

  Market moves    22 June 2020

• Risk transfer round-up - 22 June

  CRT sector developments and deal news

  Deutsche Bank has completed a US$125.58m six-year CLN that references a US$1.932bn global corporate...

  News    22 June 2020

• SCI Start the Week - 22 June

  A review of securitisation activity over the past seven days

  FREE - Capital Relief Trades Virtual Panel - LIVE Join SCI live again this Thursday, 25 June, for a...

  News    22 June 2020

• Sicilian CRT launched

  BAPR completes SME securitisation

  The EIF and Banca Agricola Popolare di Ragusa (BAPR) have completed a synthetic securitisation refer...

  News    19 June 2020

• Lift off

  Credit Suisse finalises SRT

  Credit Suisse has priced an Sfr130.5m equity tranche that references a Sfr1.8bn blind pool of medium...

  News    19 June 2020

• CMBS scores in first TALF window

  Sector developments and company hires

  CMBS scores in first TALF subscription Investors requested US$252m in loans under the first TALF 2....

  Market moves    18 June 2020

• SRT debut

  Sabadell completes first synthetic securitisation

  Sabadell has completed a €96m mezzanine guarantee with the EIF. The transaction references...

  News    18 June 2020

• Bridging gaps

  Linking SRT originating banks with insurance partners

  Texel is aiming to help insurers and banks bridge gaps in their understanding of how each sector app...

  Market moves    17 June 2020

• Risk transfer round-up - 17 June

  CRT sector developments and deal news

  Credit Suisse is rumoured to be readying a capital relief trade from the Elvetia programme that is s...

  News    17 June 2020