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.

• ArrowMark acquires investment platform

  Sector developments and company hires

  Acquisition ArrowMark Partners has acquired the bank investment platform and assets of StoneCastle...

  Market moves    14 February 2020

• Secured versus unsecured

  Early-stage MPL delinquencies predictive of charge-offs

  Given that a secured loan lender has the right to seize the collateral securing the loan to recoup b...

  News    14 February 2020

• Positive outlook

  Spanish REO boost expected

  The outlook for Spanish non-performing loan transactions backed by repossessed real estate appears p...

  News Analysis    14 February 2020

• Futura placed

  European ABS market update

  JPMorgan has placed the re-offered Futura 2019 NPL ABS at a wider print than some market participant...

  Market Reports    14 February 2020

• Italian private market JV inked

  Sector developments and company hires

  EMEA Oxane Partners has appointed Andrew Tisdall as director, portfolio management solutions. Tis...

  Market moves    13 February 2020

• Risk transfer round-up - 13 February

  CRT sector developments and deal news

  Mediobanca is readying another capital relief trade in addition to its inaugural SRT that will close...

  News    13 February 2020

• Diversified play

  Rate improvements driving ILS pick-up

  Reinsurance rate improvements are precipitating new investor interest in and fund reallocations to t...

  News    13 February 2020

• Risk transfer boost

  CRT issuance breaks record

  Capital relief trade issuance broke a record in 2019, with volumes reaching €7.5bn. This ma...

  News Analysis    13 February 2020

• CRT upgraded due to 'substantial' increase in CE

  Sector developments and company hires

  Canadian MBS ETF BMO Asset Management has launched a new stable of ETFs trading on the TSX, inclu...

  Market moves    12 February 2020

• CMBS trustee assumption refuted

  Sector developments and company hires

  EMEA Michael Newell has joined Cadwalader, Wickersham & Taft as a partner in London. A me...

  Market moves    10 February 2020

• SCI Start the Week - 10 February

  A review of securitisation activity over the past seven days

  SCI NPL Securitisation Awards 2020 Nominations have now opened for the inaugural SCI NPL Securitisa...

  News    10 February 2020

• Sporadic issuance

  CQS SRT wave unlikely

  BNP Paribas arranged Amalia, Banca Nazionale del Lavoro’s landmark synthetic securitisatio...

  News Analysis    10 February 2020

• EBA reports pending

  Trapped excess spread requirement could be dropped

  The EBA will finalise its approach to significant risk transfer this year through the publication of...

  News Analysis    7 February 2020

• Risk transfer round-up - 7 February

  CRT sector developments and deal news

  Bank of Scotland (BOS) is in the market with Syon Securities 2020, its second UK mortgage SRT (SCI 2...

  News    7 February 2020

• Syon Securities priced

  Bank of Scotland engineers return

  Bank of Scotland has priced a seven-year financial guarantee that references a £550m portf...

  News    7 February 2020

• Tightening trend

  European ABS market update

  Appetite for European ABS paper continues to be strong. The market is currently characterised by a d...

  Market Reports    7 February 2020

• GSE Libor transition deadlines released

  Sector developments and company hires

  ECOWAS prepping ABS The Commission of the of the Economic Community of West African States (ECOWAS)...

  Market moves    6 February 2020

• Rating agency shuffles senior US staff

  Sector developments and company hires

  EMEA Pan-European special situations and credit trading lawyer Justin Conway has joined McCarthy De...

  Market moves    5 February 2020

• Advisor picked to help end GSE conservatorship

  Sector developments and company hires

  Acquisition Link Group has signed an agreement to acquire Pepper European Servicing from Pepper G...

  Market moves    4 February 2020

• HAPS flurry

  Greek NPL ABS pipeline grows

  Piraeus Bank is set to securitise €7bn of non-performing loans in 2020. The lender is the l...

  News    4 February 2020

• Hong Kong landmark

  First-of-a-kind deal could herald broader securitisation market return

  A landmark ABS deal in Hong Kong is anticipated to be the first of many. At the same time, there is...

  News Analysis    4 February 2020