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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.


  • 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
  • Structured credit head announced

    Sector developments and company hires

    Acquisition finalised Artex has completed the acquisition of Horseshoe Insurance Services Holdings...

    Market moves    18 November 2019
  • SME programmes launched

    EIF supports two inaugural funding initiatives

    The EIF has for the first time provided funding support for a German online SME lending pla...

    News    18 November 2019
  • SCI Start the Week - 18 November

    A review of securitisation activity over the past seven days

    Transaction of the week UniCredit has completed what is believed to be the largest European ABS tra...

    News    18 November 2019
  • Full-stack trend continues

    FCA completes Italian auto SRT

    Fiat Chrysler Automobiles (FCA) has completed a €912.6m true sale significant risk transfer...

    News    15 November 2019
  • Morgan loan prepays

    Sector developments and company hires

    Coupon swaps planned The New York Fed's open market trading desk plans to conduct four sma...

    Market moves    15 November 2019
  • Risk transfer round-up - 15 November

    CRT sector developments and deal news

    Santander is rumoured to be prepping a synthetic securitisation of German consumer loans. This is on...

    News    15 November 2019
  • ERLS returns

    Lone Star prints Irish NPL RMBS

    Lone Star has priced its latest Irish non-performing loan RMBS at the same levels as its previous ER...

    News    15 November 2019
  • Landmark ABS inked

    UniCredit completes large corporate ABS

    UniCredit has completed what is believed to be the largest European ABS transaction post-crisis. Dub...

    News    14 November 2019
  • Alhambra priced

    SME ABS gets over the line at last

    The long-awaited Spanish SME ABS Alhambra SME Funding 2019-1 has priced. The closest Europe has yet...

    News    14 November 2019
  • ESG initiative launched

    Sector developments and company hires

    Alt heads named test Allianz Global Investors has unveiled leadership changes that will take effec...

    Market moves    13 November 2019
  • Performance tracked

    Peripheral NPL ABS compared

    JPMorgan has launched respective performance trackers for Italian and Iberian non-performing loan se...

    News    12 November 2019
  • First RMBS tied to AONIA marketing

    Company hires and sector developments

    AONIA debut Commonwealth Bank of Australia’s new A$1bn Medallion Trust Series 2019-1 is...

    Market moves    11 November 2019
  • SCI Start the Week - 11 November

    A review of securitisation activity over the past seven days

    Stories of the week Pursuing illiquidity premia Corbin Capital answers SCI's questions Risk t...

    News    11 November 2019
  • MPL ABS breaches liquidity covenant

    Sector developments and company hires

    EMEA BTIG has established a fixed income credit division in London to service clients across EMEA...

    Market moves    8 November 2019
  • Liquidation challenges

    Greek economy precludes enforcement option

    An improvement in economic fundamentals and reform efforts has boosted both the deal flow and prospe...

    News Analysis    8 November 2019
  • Risk transfer return

    Bank of Ireland issues mezzanine tranche

    Bank of Ireland has issued an additional mezzanine tranche on top of the junior tranche of a 2017 ca...

    News    8 November 2019
  • Risk transfer round-up - 8 November

    CRT sector developments and deal news

    BMO will call a capital relief trade dubbed Muskoka Series 2017-1 in December. The senior secured an...

    News    8 November 2019
  • Rollover prepped

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    Hoist Finance is readying a rated securitisation backed by Italian unsecured non-performing loans wi...

    News Analysis    7 November 2019
  • Pursuing illiquidity premia

    Corbin Capital ceo Tracy McHale Stuart and cio Craig Bergstrom answer SCI's questions

    Q: How and when did Corbin Capital become involved in the securitisation market? TMS: We&rsqu...

    The Structured Credit Interview    6 November 2019
  • CMBS md recruited

    Sector developments and company hires

    North America Incapital has appointed William White as md, CMBS. Based in Boca Raton, he will rep...

    Market moves    6 November 2019