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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    News Analysis    14 May 2020
  • Portfolio resilience

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    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

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    TALF CLO rules clarified The US Federal Reserve has clarified its CLO eligibility rules for TALF. I...

    Market moves    13 May 2020
  • Positive outlook

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    News    13 May 2020
  • Risk transfer round-up - 13 May

    CRT sector developments and deal news

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    News    13 May 2020
  • SFSF investments disclosed

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    Market moves    12 May 2020
  • Residual value buffer provided

    Sector developments and company hires

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    Market moves    11 May 2020
  • SCI Start the Week - 11 May

    A review of securitisation activity over the past seven days

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    News    11 May 2020
  • Drafting issues

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    Talking Point    11 May 2020
  • EC decision awaited

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    News Analysis    7 May 2020
  • CRM tool

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    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

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    News Analysis    7 May 2020
  • STS synthetics proposals published

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    Market moves    5 May 2020
  • Romanian SRT inked

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  • Modifications up

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    News    5 May 2020
  • Ratings resilience

    Shorter pro-rata periods to benefit SRTs

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    News    5 May 2020
  • WAM guidelines finalised

    Sector developments and company hires

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    Market moves    4 May 2020
  • SCI Start the Week - 4 May

    A review of securitisation activity over the past seven days

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    News    4 May 2020
  • On hold

    Italian NPL ABS to pick up next year

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    News    4 May 2020