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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.


  • 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
  • SCI Capital Relief Trades Awards 2019

    Personal Contribution to the Industry: Mascha Canio, Head of Credit & Insurance Linked Inves...

    Heading up a team responsible for one of the largest investment portfolios in the sector that has dr...

    News    6 November 2019
  • NPL ABS inked

    Sector developments and company hires

    Eminent domain mods introduced To address the heightened risk to borrowers and investors of a multi...

    Market moves    5 November 2019
  • SCI Capital Relief Trades Awards 2019

    Advisor/Service Provider of the Year: Scope Ratings

    Scope Ratings has been selected as SCI’s Advisor/Service Provider of the Year, thanks to i...

    News    5 November 2019
  • SCI Capital Relief Trades Awards 2019

    Credit Insurer of the Year: Arch Capital Group

    Arch Capital Group Ltd (ACGL) is SCI’s Credit Insurer of the Year in recognition of its po...

    News    4 November 2019
  • SCI Start the Week - 4 November

    A review of securitisation activity over the past seven days

    Transaction of the week Goldman Sachs is in the market with an unusual UK buy-to-let RMBS secured b...

    News    4 November 2019
  • Tactical opportunity?

    Downturn could spur CRT secondary activity

    Capital relief trade secondary market activity remains minimal. However, a credit downturn could spu...

    News Analysis    4 November 2019
  • RFC issued on disclosures

    Sector developments and company hires

    CDO transfer CVP CLO Manager has resigned as investment manager to the CVP Cascade CLO-1 and CLO-2...

    Market moves    1 November 2019
  • Cautious optimism

    NPL ABS opinion welcomed, although challenges remain

    The EBA’s recent opinion on non-performing loan securitisations (SCI 24 October) has been...

    News Analysis    1 November 2019
  • Tough approach continues

    RTS leaves disclosure challenges unresolved

    The European Commission’s long-awaited regulatory technical standards on securitisation di...

    News Analysis    1 November 2019
  • SRT report pending

    EBA to propose harmonised excess spread treatment

    The EBA is set to propose a harmonised regulatory treatment for excess spread in significant risk tr...

    News Analysis    1 November 2019
  • SCI Capital Relief Trades Awards 2019

    Law Firm of the Year: Clifford Chance

    Clifford Chance has been involved in the capital relief trades market from the beginning and the pas...

    News    1 November 2019
  • GARC deal expected

    Sector developments and company hires

    EMEA Florent Trouiller has joined Norton Rose Fulbright as a partner in its Luxembourg office. Tr...

    Market moves    31 October 2019
  • Risk transfer round-up - 31 October

    CRT sector developments and deal news

    Santander is rumoured to be readying two synthetic securitisations of consumer loans. The issuer has...

    News    31 October 2019
  • SCI Capital Relief Trades Awards 2019

    Investor of the Year: European Investment Fund

    The European Investment Fund (EIF) provides an unparalleled level of support to the capital relief t...

    News    31 October 2019
  • Untapped potential?

    New style reinsurance vehicles yet to take off

    Almost a year since launch risk-remote reinsurance capacity vehicle Vermeer Re is yet to have any di...

    News    31 October 2019
  • Anti-NSDA provisions welcomed

    Sector developments and company hires

    Anti-NSDA provisions welcomed The inclusion of anti-net short debt activism (NSDA) provisions in of...

    Market moves    30 October 2019
  • SCI Capital Relief Trades Awards 2019

    Innovation of the Year: FCT Jupiter 2019

    Societe Generale’s US$3.4bn FCT Jupiter 2019 transaction has won SCI’s Innovatio...

    News    30 October 2019
  • SCI Capital Relief Trades Awards 2019

    Impact Deal of the Year: Room2Run

    As the first-ever synthetic impact securitisation with a multilateral development bank (MDB), Room2R...

    News    29 October 2019
  • SCI Capital Relief Trades Awards 2019

    Transaction of the Year: Syon Securities 2019

    Lloyds Banking Group’s synthetic UK RMBS Syon Securities 2019 was motivated by prudent ris...

    News    28 October 2019
  • SCI Start the Week - 28 October

    A review of securitisation activity over the past seven days

    Transaction of the week Fannie Mae has priced its first credit risk transfer transaction referencin...

    News    28 October 2019