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.

• 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

• Credit analysts poached

  Sector developments and company hires

  Credit analysts poached Cairn Capital has appointed José Ferrero and Vihren Jordanov as...

  Market moves    4 December 2019

• SCI Start the Week - 2 December

  A review of securitisation activity over the past seven days

  Transaction of the week Credit Agricole is marketing a securitisation of Dutch consumer loans origi...

  News    2 December 2019

• Full-stack debut

  BDK completes first auto SRT

  Bank Deutsches Kraftfahrzeuggewerbe (BDK) has debuted its first full-stack capital relief trade. Dub...

  News    2 December 2019

• Spanish SRT inked

  Banco Cetelem completes full-stack auto ABS

  Banco Cetelem has completed the first full-stack Spanish auto significant risk transfer transaction...

  News    2 December 2019

• Euro AM promotes three

  Sector developments and company hires

  AM promotes three Alcentra has promoted Daniel Fabian to president and coo. In this role, he will...

  Market moves    2 December 2019

• Dutch consumer ABS prepped

  Transaction features several departures from previous deals

  Credit Agricole is marketing a securitisation of Dutch consumer loans originated via subsidiaries of...

  News    29 November 2019

• Euro lending support announced

  Sector developments and company hires

  Euro lending support announced The EIF has committed €100m to online lending marketplace...

  Market moves    28 November 2019

• Italian market developments 'positive' for ABS

  Sector developments and company hires

  Italian market developments ‘positive’ for ABS Recent market developments in i...

  Market moves    27 November 2019

• Indian innovation

  Diverse Indian ABS market sees growing, global investor base

  The Indian securitisation market continues to grow and develop, with an increasingly global investor...

  News Analysis    26 November 2019

• Mortgage partnership announced

  Sector hires and company developments

  Euro credit team bulks up CIFC has hired Anders Samuelsen from Muzinich as it continues to build i...

  Market moves    25 November 2019

• SCI Start the week - 25 November

  A review of securitisation activity over the past seven days

  Transaction of the week Hercules tapped Alpha Bank is set to securitise a €12bn mixed p...

  News    25 November 2019

• FRTB consultation launched

  Sector developments and company hires

  APAC poll highlights key risks More than 80% of market participants polled by Moody’s at...

  Market moves    22 November 2019

• New ground

  O&G securitisations open up new asset class to ABS investors

  For the first time, working interests in oil and gas wellbores have been securitised, marking a new...

  News Analysis    22 November 2019

• Ceo retires

  Sector developments and company hires

  Capital markets head appointed 23 Capital has hired Sreesha Vaman as md, head of capital markets....

  Market moves    21 November 2019

• Ramping up

  Standard Chartered boosts corporate issuance

  Standard Chartered has completed a US$135m CLN that references a US$1.5bn portfolio of US and Europe...

  News    21 November 2019

• Legal firm beefs up

  Sector developments and company hires

  GSE capital rule eyed The FHFA plans to re-propose the entire regulation on capital requirements f...

  Market moves    20 November 2019

• Hercules tapped

  Alpha Bank preps NPL securitisation

  Alpha Bank is set to securitise a €12bn mixed portfolio of retail secured and unsecured loa...

  News    20 November 2019

• Italian AM expands to US

  Sector developments and company hires

  Azimut expands Italian asset manager Azimut has established a US-based operation named Azimut Alte...

  Market moves    19 November 2019

• Growth surge?

  Russian structured bonds expected to grow

  The Russian structured finance market has traditionally been dominated by a small number of asset cl...

  News    19 November 2019

• US CRT pick-up?

  Volumes to remain restricted to large banks

  The US capital relief trades market is witnessing a long-awaited uptick, with three deals reportedly...

  News Analysis    18 November 2019