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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CMBS scores in first TALF window
Sector developments and company hires
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Market moves 18 June 2020 -
SRT debut
Sabadell completes first synthetic securitisation
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News 18 June 2020 -
Bridging gaps
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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 -
Older CLOs underperforming
Sector developments and company hires
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Market moves 16 June 2020 -
Take-up rates
Significant variations across European moratoria
Payment holidays have so far assisted in deterring defaults during the coronavirus crisis. However,...
News 15 June 2020 -
SCI Start the Week - 15 June
A review of securitisation activity over the past seven days
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News 15 June 2020 -
Californian auto loans eyed
Sector developments and company hires
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Market moves 12 June 2020 -
Strategic review
Direct lending JV formed
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News 12 June 2020 -
Addressing inconsistencies
Performance metrics switched
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News 12 June 2020 -
Risk transfer rebound
Deutsche Bank completes SRT
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News Analysis 12 June 2020 -
Euro ABS 'game changer' recommended
Sector developments and company hires
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Market moves 11 June 2020 -
LCR eligibility eyed
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Prime Collateralised Securities last week withdrew several liquidity coverage ratio assessments on d...
News 10 June 2020 -
Risk transfer round-up - 10 June
CRT sector developments and deal news
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News 10 June 2020 -
Resolve and resilience
Content sponsored by Ocorian
James Maitland, regional head of Americas, Bermuda & Caribbean, and global head of capita...
Talking Point 10 June 2020 -
NCSLT consent judgment denied
Sector developments and company hires
NCSLT consent judgment denied Fitch has affirmed 37 notes and maintained its rating watch negative...
Market moves 9 June 2020 -
Spread compression
European ABS market update
The rally in broader risk assets and the lack of new supply has boosted demand for paper in the Euro...
News 9 June 2020 -
Perfect storm
Hertz bankruptcy to reshape auto ABS?
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News Analysis 9 June 2020 -
CLO business integrated
Sector developments and company hires
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Market moves 8 June 2020 -
HAPS ABS debuts
Eurobank finalises Cairo transaction
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News 8 June 2020 -
SCI Start the Week - 8 June
A review of securitisation activity over the past seven days
FREE - Capital Relief Trades Virtual Panel - LIVE For a discussion on how the Covid-19 fallout has...
News 8 June 2020