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.

• NPL ABS pair inked

  Guber, UBI Banca hit the market

  A pair of Italian non-performing loan securitisations – dubbed Futura 2019 and Iseo SPV &a...

  News    17 December 2019

• Structured credit pro returns to the buy-side

  Sector developments and company hires

  EMEA Kingswood Holdings has appointed Lindsey McMurray and Howard Garland to its board from Polle...

  Market moves    17 December 2019

• Economic efficiency

  Standardised bank SRT pros, cons weighed

  Various factors should be considered when contemplating whether to execute a significant risk transf...

  News Analysis    16 December 2019

• Brand value

  WBS issuer differentiation highlighted

  In an unsolicited comment, Fitch last week suggested that the overall benefits of US whole business...

  News Analysis    16 December 2019

• SCI Start the Week - 16 December

  A review of securitisation activity over the past seven days

  Transaction of the week The National Bank of Greece has completed its first secured non-performing...

  News    16 December 2019

• Risk transfer round-up - 16 December

  CRT sector developments and deal news

  Deutsche Bank is rumoured to be readying a capital relief trade from the CRAFT programme. The last C...

  News    16 December 2019

• Mixed motivations

  THRP sets stage for US bank CRT

  A combination of macro and micro factors are understood to have influenced the issuance of JPMorgan&...

  News    13 December 2019

• CET1 ratios eyed

  Disposals, securitisations to protect bank capital

  European bank CET1 ratios have stabilised over recent years, as Basel 3 capital requirements and oth...

  News Analysis    12 December 2019

• Sticking with the programme

  ABSPP hits new high, but total volumes remain low

  Latest figures from the ECB show that its ABSPP holdings are at an all-time high. However, the progr...

  News    12 December 2019

• 2020 vision

  Looking for relative value in European securitisation

  Next year seems likely to present structured finance investors with even greater challenges in the s...

  News Analysis    11 December 2019

• IT solution

  Infrastructure ABS could hold the key to a brighter future for Europe's banks

  The European banking sector is struggling under the burden of shrinking profits and growing costs, y...

  News Analysis    9 December 2019

• SCI Start the Week - 9 December

  A review of securitisation activity over the past seven days

  Transaction of the week NIBC recently priced the first fully-compliant ESG CLO, North Westerly VI,...

  News    9 December 2019

• Mutual agreement

  BPPB SRT debuts

  Further details have emerged about the EIF and Banca Popolare di Puglia e Basilicata’s (BP...

  News    9 December 2019

• Core qualities

  Caroline Chen, svp and research analyst at Income Research & Management, answers SCI's quest...

  Q: How and when did Income Research & Management become involved in the securitisation marke...

  The Structured Credit Interview    9 December 2019

• Turbo feature for CLO reset

  Sector developments and company hires

  Early upgrade DBRS Morningstar has taken the unusual step of upgrading from double-B (low) to dou...

  Market moves    9 December 2019

• ABS focus

  Music, sports, entertainment firm grows securitisation capabilities

  23 Capital recently made a number of hires to boost their securitisation capabilities, signalling th...

  News Analysis    6 December 2019

• Grattan refinanced

  Bank of Ireland completes CRT

  Bank of Ireland has originated a €265m funded and unfunded financial guarantee that referen...

  News    6 December 2019

• Alternative appetite

  Euro CMBS specialist property exposure to rise

  Appetite for European CMBS secured by specialist or alternative assets is expected to grow in 2020,...

  News    6 December 2019

• ABS head retired

  Sector developments and company hires

  ABS head retires Janus Henderson’s head of ABS investment Ed Panek has now retired from...

  Market moves    6 December 2019

• Moving into the mainstream

  Booming aviation ABS sector shakes off esoteric label?

  Aviation ABS issuance has seen strong growth, with 2019 set to be a bumper year and investors also d...

  News Analysis    5 December 2019

• Cigarette slump?

  Dispute revenue to offset declining MSA cashflows

  US cigarette shipments have declined by an average of 3.2% per year since 2000 and are expected to d...

  News    4 December 2019