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.

• Project Cairo prepped

  Eurobank applies for HAPS guarantee

  Eurobank has applied to the Greek government for a senior tranche guarantee under the Hercules Asset...

  News    26 February 2020

• GM withdrawal from Aussie autos 'credit negative'

  Sector developments and company hires

  CMBS analytics platform Thetica Systems has launched a web platform for CMBS pricing and analytic...

  Market moves    25 February 2020

• UK SRT debuts

  Opel prepping full-stack auto ABS

  BNP Paribas is marketing Opel’s second full-stack auto ABS from the E-CARAT programme. Dub...

  News    25 February 2020

• Social factors

  Positive ESG scores for post-crisis vintages

  ESG relevance scores (ESG.RS) are more likely to be negative for seasoned securitisations, according...

  News    24 February 2020

• High-profile bankers exit SRT

  Sector developments and company hires

  SRT departures Last week saw a couple of high-profile exits from SRT banking teams in London. Struc...

  Market moves    24 February 2020

• Rare CMBS prepped

  BofA brings 'one-off' Dutch transaction

  BofA is in the market with a Dutch CMBS, dubbed Taurus 2020-1 NL. The €620.6m deal is the f...

  News    24 February 2020

• SCI Start the Week - 24 February

  A review of securitisation activity over the past seven days

  REMINDER: SCI NPL Securitisation Awards 2020 Nominations are now open for the inaugural SCI N...

  News    24 February 2020

• Moving down

  Insurers target first-loss CRTs

  Insurers are now targeting the first-loss tranches of capital relief trades, having eyed the senior...

  News Analysis    21 February 2020

• SRT fund launched

  AXA engineers return

  AXA Investment Managers has completed its eighth partner capital solutions fund. With the move, the...

  News    21 February 2020

• Rarity value

  European ABS market update

  The European ABS market remains characterised by a lack of free flow. Against this backdrop, the sen...

  Market Reports    21 February 2020

• Minority equity interest acquired

  Sector developments and company hires

  Equity interest acquired Affiliated Managers Group has acquired a minority equity interest in Com...

  Market moves    20 February 2020

• Risk transfer round-up - 20 February

  CRT sector developments and deal news

  Further details have been revealed of CRT transactions that were completed in 4Q19. One is another B...

  News    20 February 2020

• C-PACE fund debuts

  Standalone platform leads origination

  Samas Asset Management (SAM) has launched its debut fund, a closed-end vehicle dubbed SAMAS FUNDING...

  News    20 February 2020

• SME double

  EIF closes pair of EFSI guarantees

  The EIF has closed two new guarantee agreements supporting European SMEs, both of which are supporte...

  News    19 February 2020

• Manager discretion

  Direct lending securitisations on the rise

  A growing number of direct lending funds are raising debt via securitisation of their shares. A care...

  News    19 February 2020

• Distressed debt unit formed

  Oaktree establishes Chinese subsidiary

  Oaktree Capital Management has become the first foreign distressed debt manager to set up a wholly o...

  News    19 February 2020

• MPL acquisition to achieve 'regulatory clarity'

  Sector developments and company hires

  Acquisition LendingClub is set to acquire Radius Bancorp and its wholly owned online subsidiary R...

  Market moves    19 February 2020

• Refinancing strategy

  VW master trusts augment auto ABS volumes

  VW’s issuance of auto ABS from master trust vehicles has been extensive, yet it seems to h...

  News Analysis    19 February 2020

• Ares co-founder steps down from board

  Sector developments and company hires

  North America Ares Management Corporation has appointed Kipp deVeer to its board. Concurrently, J...

  Market moves    17 February 2020

• SCI Start the Week - 17 February

  A review of securitisation activity over the past seven days

  REMINDER: SCI NPL Securitisation Awards 2020 Nominations have now opened for the inaugural SC...

  News    17 February 2020

• ArrowMark acquires investment platform

  Sector developments and company hires

  Acquisition ArrowMark Partners has acquired the bank investment platform and assets of StoneCastle...

  Market moves    14 February 2020