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.
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Liquidity support
Amendments mitigate forbearance impact
A number of UK securitisation issuers are enhancing their deals to mitigate the negative impact on r...
News Analysis 14 May 2020 -
Portfolio resilience
Technology-driven investment gaining traction
Pagaya has expanded to the US West Coast, beefing up its origination group. At the same time, the fi...
News 14 May 2020 -
TALF CLO rules clarified
Sector developments and company hires
TALF CLO rules clarified The US Federal Reserve has clarified its CLO eligibility rules for TALF. I...
Market moves 13 May 2020 -
Positive outlook
Survey indicates distressed debt pick-up
A new survey of private markets suggests that a pick-up in distressed debt activity is likely over t...
News 13 May 2020 -
Risk transfer round-up - 13 May
CRT sector developments and deal news
Bank of Montreal is rumoured to be prepping a corporate loan capital relief trade for 3Q20. The lend...
News 13 May 2020 -
SFSF investments disclosed
Sector developments and company hires
SFSF investments disclosed The AOFM has disclosed the recent investments it has made under the Stru...
Market moves 12 May 2020 -
Residual value buffer provided
Sector developments and company hires
Residual value buffer provided Volkswagen Financial Services UK will calculate a collateral resid...
Market moves 11 May 2020 -
SCI Start the Week - 11 May
A review of securitisation activity over the past seven days
Last week's stories CRM tool CBILS guarantees eligible for CRR recognition EC decision awaite...
News 11 May 2020 -
Drafting issues
Assia Damianova, special counsel at Cadwalader, Wickersham & Taft LLP, considers the potenti...
CRTs typically consist of a credit transfer instrument entered into between the credit institution a...
Talking Point 11 May 2020 -
EC decision awaited
Preferential capital treatment mooted for STS synthetics
The EBA’s framework for STS synthetic securitisations (SCI 6 May) is broadly in line with...
News Analysis 7 May 2020 -
CRM tool
CBILS guarantees eligible for CRR recognition
The UK PRA published at the end of April a statement clarifying whether Coronavirus Business Interru...
News 7 May 2020 -
Risk transfer round-up - 7 May
CRT sector developments and deal news
BBVA is rumoured to be readying a capital relief trade for 2Q20. The lender has completed a total of...
News 7 May 2020 -
NPA opportunities
Global investors target Indian distressed debt
The coronavirus fallout is set to severely impact credit delivery and asset quality in India, with o...
News Analysis 7 May 2020 -
STS synthetics proposals published
Sector developments and company hires
STS synthetics proposals published The EBA has published its proposals for developing an STS framew...
Market moves 6 May 2020 -
Ladder locks in financing
Sector developments and company hires
Ladder locks in financing Ladder Capital has entered into a strategic financing arrangement with ...
Market moves 5 May 2020 -
Romanian SRT inked
Uncapped guarantee completed
The EIF and nine Romanian banks have completed an uncapped guarantee agreement from the SIUGI progra...
News 5 May 2020 -
Modifications up
MPL impairments bucking the trend
US marketplace loan payment impairment rates have increased amid the coronavirus fallout but remain...
News 5 May 2020 -
Ratings resilience
Shorter pro-rata periods to benefit SRTs
A sharp deterioration in asset performance due to the coronavirus fall-out may lead to sequential pa...
News 5 May 2020 -
WAM guidelines finalised
Sector developments and company hires
WAM guidelines finalised The EBA has published its final guidelines on the determination of the wei...
Market moves 4 May 2020 -
SCI Start the Week - 4 May
A review of securitisation activity over the past seven days
Last week's stories Cautiousness prevails European CLO market update CRT vol aims for the sta...
News 4 May 2020 -
On hold
Italian NPL ABS to pick up next year
Italian non-performing loan securitisations are anticipated to drop by 50%-70% this year, compared t...
News 4 May 2020