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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.


  • Green investment partnership launched

    Company hires and sector developments

    Green investment Amundi and the EIB have signed a partnership to launch the Green Credit Continuum...

    News    12 July 2019
  • Pros and cons

    STS conversion benefits weighed

    The incentives for converting pre-2019 securitisations into STS-compliant deals differ across seller...

    News Analysis    12 July 2019
  • Mixed bag

    Hybrid M&A, ABS transactions on the rise

    Following the financial crisis, a growing number of financial assets have fallen into the hands of n...

    News Analysis    11 July 2019
  • Risk transfer round-up - 11 July

    CRT sector developments and deal news

    Standard Chartered is believed to be readying a corporate capital relief trade that is expected to c...

    News    11 July 2019
  • Novel approach

    UTPs drive ReoCo rethink

    Investors and servicers in the Italian non-performing loan market are targeting a new approach to Re...

    News Analysis    11 July 2019
  • Investment chief appointed

    Sector developments and company hires

    Business Mortgage Finance 6 update Business Mortgage Finance 6, the issuer, has informed noteholde...

    Market moves    10 July 2019
  • Renewable debut

    Green ABS could be first of many

    Glennmont Partners has sponsored a debut securitisation backed by a portfolio of project finance loa...

    News    10 July 2019
  • New deals surge

    Quarterly SCI data update

    2Q19 saw a surge in new issuance volume across securitisation markets either side of the Atlantic. T...

    News Analysis    10 July 2019
  • Spanish exposure

    Rare NPL RMBS prepped

    Rarely seen Spanish assets are behind the latest non-performing loan RMBS currently marketing. At th...

    News    10 July 2019
  • SRT trio

    Santander expands SME foothold

    Santander has completed three SME significant risk transfer transactions that total €940.6m...

    News    9 July 2019
  • Senior CLO trader poached

    Sector developments and company hires

    CLO expert nabbed BlueBay has appointed Alex Navin to join its structured credit team as...

    Market moves    8 July 2019
  • Greencoat Investments notice received

    Sector developments and company hires

    BUMF 6 application discontinued A notice of discontinuance from Greencoat Investments has been rec...

    Market moves    5 July 2019
  • Auto SRT completed

    Innovative direct CLN structure debuts

    Santander has completed its first synthetic significant risk transfer transaction that references a...

    News Analysis    5 July 2019
  • EBRD appoints Greece, Cyprus lead

    Company hires and sector developments

    EBRD hires NPL vet The EBRD has appointed Andreea Moraru to lead its operations in Greece and Cypr...

    Market moves    4 July 2019
  • Helping hand

    Refugee risk-sharing facility inked

    Dutch development bank FMO has signed a pilot bilateral risk-sharing facility under its NASIRA progr...

    News Analysis    4 July 2019
  • Increasing capacity

    Bridging the CRT gap for insurers

    Greater involvement from insurers in capital relief trades should improve any capacity constraints t...

    News Analysis    3 July 2019
  • Pre-summer rush

    European ABS market update

    Activity levels are currently high across the European ABS/MBS and CLO markets and that looks set to...

    Market Reports    3 July 2019
  • Rarely-seen synthetic securitisation revealed

    Transaction references unusual pool of US auto loans

    Santander has issued a rare synthetic securitisation referencing a collateral pool of US pr...

    News    2 July 2019
  • CLO firm boosts research team

    Company hires and sector developments

    CEDE made public AIR Worldwide has published its Catastrophe Exposure Data Exchange (CEDE) databas...

    Market moves    2 July 2019
  • Latest podcast now live!

    Mascots, Japanese CLO investors and STS struggles

    In this month's edition of the SCI podcast, the editorial team get stuck into some interesti...

    News    1 July 2019
  • Wholesale switch

    Creval eyes NPL reduction strategy

    Credito Valtellinese (Creval) has announced a five-year business plan that aims to reduce its non-pe...

    News    28 June 2019