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 transfer round-up - 2 November

  CRT sector developments and deal news

  Santander is believed to be readying two consumer capital relief trades and a corporate deal to prin...

  News    2 November 2018

• Market moves update

  Company hires and sector developments in structured finance

  Acquisitions Lennar Corporation has agreed to sell its Rialto Investment and Asset Management busi...

  Market moves    31 October 2018

• Market moves update

  Sector developments and new hires in structured finance

  Acquisitions Franklin Templeton has acquired Benefit Street Partners, expanding its fixed income c...

  Market moves    30 October 2018

• SCI Start the Week - 29 October

  A review of securitisation activity over the past seven days

  Market commentary The US secondary CLO market saw heightened activity last week, with bid-lists cir...

  News    29 October 2018

• Market moves update

  Sector developments and company hires in structured finance

  Moody's has downgraded the ratings of  123 tranches, placed on review for upgrade t...

  Market moves    26 October 2018

• Mixed outlook

  Risk transfer diversity set to increase

  The outlook for risk transfer issuance volumes is mixed, according to panellists at SCI’s...

  Talking Point    26 October 2018

• Heightened holding

  European ABS market update

  Invesco is preparing a new €410m European CLO deal, along with GSO Capital Partners, which...

  Market Reports    26 October 2018

• Market moves update

  Sector developments and company hires in structured finance

  China Fitch Ratings has launched Fitch Bohua Credit Ratings to serve China's onshore bond...

  Market moves    25 October 2018

• CLOs in demand

  Quarterly SCI data update

  Analysis of SCI's databases underlines the significant demand for CLO paper seen in 3Q18, in...

  News Analysis    23 October 2018

• Market moves update

  Company hires and sector developments in structured finance

  [b]Acquisition[/b] [b]Miller[/b] is to acquire the independent London market (re)insurance broker[...

  Market moves    23 October 2018

• Market moves update

  Company hires and sector developments in structured finance

  Accrual clause nixed The New York State Court of Appeals last week held that contractual attempts...

  Market moves    22 October 2018

• SCI Start the Week - 22 October

  A review of securitisation activity over the past seven days

  Market commentary European primary ABS activity continued to be robust last week. The BPCE Home Loa...

  News    22 October 2018

• Performance blueprint

  Positive predictions for NPL securitisations

  Northern Italian non-performing loan portfolios are performing better than Southern Italian portfoli...

  Talking Point    19 October 2018

• Technicals eyed

  European ABS market update

  Porsche’s FACT Compartment 2018-1 auto lease ABS has seen no substantial resistance in the...

  Market Reports    19 October 2018

• Risk transfer round-up - 19 October

  CRT sector developments and deal news

  Credit Suisse is believed to be readying a Swiss corporate deal from its Elvetia programme. The issu...

  News    19 October 2018

• Market moves update

  Company hires and sector developments in structured finance

  Alternatives alliance DWS Group and Tikehau Capital have entered into an alliance, following Tike...

  Market moves    18 October 2018

• Primary energy

  European ABS primary market update

  The European primary RMBS market has come to life after the BPCE Home Loans FCT 2018 priced today (1...

  Market Reports    18 October 2018

• Latest SCI podcast now live

  SCI podcast episode two has been released

  SCI’s latest podcast is now live. This month the team discuss the African Development Bank...

  News    18 October 2018

• Steady subscription

  European ABS primary market update

  European primary ABS activity continues to be robust. In the RMBS sector, the BPCE Home Loans FCT 20...

  Market Reports    17 October 2018

• Default proxy

  Second income-contingent SLABS prepped

  The UK government is readying a £3.88bn securitisation backed by English plan 1 income-con...

  News    17 October 2018

• Market moves update

  Company hires and sector developments in structured finance

  CRT poll results The results from SCI’s ‘What’s in a name?’...

  Market moves    17 October 2018