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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