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.

• Interpretation issues

  Credit Suisse completes capital relief trade

  Credit Suisse has completed its first capital relief trade of the year, dubbed Elvetia Finance serie...

  News    29 May 2019

• Investible assets

  Trade finance solution to enable institutional access

  Allianz Global Investors and HSBC are collaborating on a programme designed to make trade finance ea...

  News    29 May 2019

• STS SRTs pending

  EBA to publish discussion paper on synthetic criteria

  The EBA is set to publish a discussion paper on STS criteria for synthetic securitisations in Septem...

  News Analysis    29 May 2019

• Co-cio and liquid markets head appointed

  Company hires and sector developments

  Credit expert poached Crestline Investors has appointed Michael Aingorn as an md, based in New Yor...

  Market moves    24 May 2019

• LeaseCo boost

  Foundation laid for leasing NPL ABS

  Amendments to Italy’s securitisation law are expected to boost securitisations of non-perf...

  News Analysis    24 May 2019

• Risk transfer round-up - 24 May

  CRT sector developments and deal news

  Santander is believed to be readying a capital relief trade consisting of auto loans for 2Q19. The S...

  News    24 May 2019

• Positive performance prompts upgrades

  Sector developments and company hires

  Director hired to rebranded CLO platform DFG Investment Advisers has hired John Hwang as a directo...

  Market moves    22 May 2019

• Real estate upside

  National Bank of Greece opts for NPL ABS

  The National Bank of Greece intends to securitise €3bn of non-performing mortgage loans by...

  News    20 May 2019

• Goodwill hunting

  Higher recoveries from Interserve insolvency expected

  Interserve became the second UK outsourcer to suffer a credit event in a risk transfer transaction,...

  News Analysis    20 May 2019

• UK CMBS loan defaults

  Company hires and sector developments

  Euro CMBS 2.0 default Elizabeth Finance 2018 has become the second European CMBS 2.0 deal to suffe...

  Market moves    20 May 2019

• CLO director nabbed

  Company hires and sector developments

  Europe Hermes Investment Management has hired Kevin Roche as a director for private debt...

  Market moves    17 May 2019

• US student loan sector 'in crisis'

  Servicers 'unlikely' to handle big rise in distressed loans

  The US student loan ABS sector continues to be dominated by deals backed by FFELP...

  News Analysis    17 May 2019

• Promising prospect

  Synthetic UTPs contemplated as IFRS 9 hedge

  Synthetic securitisations referencing unlikely-to-pay loans are a more promising prospect than synth...

  News Analysis    17 May 2019

• Seeking refuge

  NPL securitisation disclosed

  Hoist Finance has confirmed in its latest 2019 interim report that it will securitise part of its no...

  News Analysis    16 May 2019

• CMBS sees prompt prepayment

  Company hires and sector developments

  Auction platform Mortgage Capital Trading has launched Trade Auction Manager (TAM) to enable more...

  Market moves    16 May 2019

• Risk transfer round-up - 16 May

  CRT sector developments and deal news

  Caixabank has completed a synthetic securitisation of Spanish SMEs with the European Investment Fund...

  News    16 May 2019

• Senior appointments abound

  Company hires and sector developments

  Acquisition Priority Income Fund has completed its acquisition of Stira Alcentra Global Credit Fun...

  Market moves    14 May 2019

• SCI Start the week - 13 May

  A review of securitisation activity over the past seven days

  Transaction of the week Last week saw an unusual Irish CMBS hit the European pipeline, from debut...

  News    13 May 2019

• Irish debut CMBS prepped

  Flurry of European ABS hit pipeline

  A rush of European securitisations have hit the pipeline, across asset classes and jurisdictions. Th...

  News    10 May 2019

• Energy expert nabbed

  Company hires and sector developments

  Energy expert nabbed Energy Estate has hired Christian Krebs as one of the leaders in&...

  Market moves    8 May 2019

• NPL securitisation inked

  Portuguese issuer returns to market

  Caixa Montepio Geral has returned to the market with its second NPL securitisation, dubbed Gaia Fina...

  News    8 May 2019