Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London
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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.


  • Autumn sales

    Italian NPL, UTP disposals continue apace

    Illimity Bank and a Cerberus Capital Management affiliate have acquired a second unlikely-to-pay loa...

    News    2 October 2019
  • CLO firm co-founder to retire

    Sector developments and company hires

    30-year CIRT debuts Fannie Mae has completed its sixth Credit Insurance Risk Transfer transaction...

    Market moves    2 October 2019
  • ABS key to energy upgrade initiative?

    Securitisation could solve efficiency projects challenge

    The European Commission reports that 75% of Europe’s building stock is not energy efficien...

    News Analysis    2 October 2019
  • B-piece service bulks out

    Sector developments and company hires

    B-piece service bulks out Greystone, has added Paul Smyth, Cary Williams, and&am...

    Market moves    30 September 2019
  • SCI Start the Week - 30 September

    A review of securitisation activity over the past seven days

    Transaction of the week FirstKey Mortgage is marketing the first securitisation backed by manufactu...

    News    30 September 2019
  • Full-stack SRT boost

    Opel, Sabadell achieve funding and capital relief

    Banco Sabadell and Opel Bank last week priced respectively full stack consumer and auto ABS deals &a...

    News Analysis    27 September 2019
  • Polish debut

    STS ABS gains EIB support

    PKO Leasing has closed Polish Lease Prime 1, the largest-ever Polish securitisation. The PLN2.5bn re...

    News    26 September 2019
  • Aussie auto ABS debut prepped

    Sector developments and company hires

    Aussie auto debut prepped The first public term securitisation backed by collateral originated by...

    Market moves    26 September 2019
  • STS synthetics framework unveiled

    EBA publishes landmark consultation

    The EBA has published its long-awaited discussion paper on its proposals for an STS framework for sy...

    News Analysis    25 September 2019
  • US CLO firm leadership shake-up

    Sector developments and company hires

    CLO firm makes md appointment MidOcean Partners has hired Natalya Michaels as md, focusing on mark...

    Market moves    25 September 2019
  • Ceo appointed

    Sector developments and company hires

    Ceo appointed CAC Specialty has appointed Michael Rice as ceo, bringing more than 25 years of expe...

    Market moves    24 September 2019
  • Master trust margins amended

    Sector developments and company hires

    Holmes Master Trust margins amended Moody’s comments that the proposed amendments to the...

    Market moves    23 September 2019
  • SCI Start the Week - 23 September

    A review of securitisation activity over the past seven days

    Transaction of the week Deutsche Bank is marketing a £114m UK CMBS, dubbed Deco 2019-RAM....

    News    23 September 2019
  • Law firm nabs SF vet

    Sector developments and company hires

    Law firm beefs up Orrick has hired structured finance lawyer Richard Hanson as a partner based in...

    Market moves    20 September 2019
  • Investor reassurance

    Spanish Supreme Court ruling assuages NPL ABS investor concerns

    Spain’s Supreme Court has ruled that Spanish banks are obliged to wait until at least 12 m...

    News Analysis    20 September 2019
  • Credit-granting guidance outlined

    "Bright-line" verification test still absent

    The EBA recently published an answer to a question posed by AFME in relation to Article 9(3) of the...

    News    19 September 2019
  • CMBS NOI slowing

    Sector developments and company hires

    Aircraft ratings review Moody’s has published a new overview which examines ABS issued i...

    Market moves    19 September 2019
  • Broader base

    New investors come to STS, but for what reason?

    A growing number of new investors, including bank treasuries, are participating in European...

    News    18 September 2019
  • Drilling down

    Opportunities on offer in consumer, despite downturn concerns

    Consumer finance in the US is still a relatively untapped asset class among institutional investors,...

    News Analysis    17 September 2019
  • CLO downgrade announced

    Sector developments and company hires

    CDS hire announced Axiom Alternative Investments has appointed Bedis Gharbi as senior portfolio ma...

    Market moves    16 September 2019
  • SCI Start the week - 16 September

    A review of securitisation activity over the past seven days

    Transaction of the week Alior Leasing has launched a 12 month revolving cash securitisation of aut...

    News    16 September 2019