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.
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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