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.

• 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