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.

• CLOs in demand

  Quarterly SCI data update

  Analysis of SCI's databases underlines the significant demand for CLO paper seen in 3Q18, in...

  News Analysis    23 October 2018

• Market moves update

  Company hires and sector developments in structured finance

  [b]Acquisition[/b] [b]Miller[/b] is to acquire the independent London market (re)insurance broker[...

  Market moves    23 October 2018

• Market moves update

  Company hires and sector developments in structured finance

  Accrual clause nixed The New York State Court of Appeals last week held that contractual attempts...

  Market moves    22 October 2018

• SCI Start the Week - 22 October

  A review of securitisation activity over the past seven days

  Market commentary European primary ABS activity continued to be robust last week. The BPCE Home Loa...

  News    22 October 2018

• Performance blueprint

  Positive predictions for NPL securitisations

  Northern Italian non-performing loan portfolios are performing better than Southern Italian portfoli...

  Talking Point    19 October 2018

• Technicals eyed

  European ABS market update

  Porsche’s FACT Compartment 2018-1 auto lease ABS has seen no substantial resistance in the...

  Market Reports    19 October 2018

• Risk transfer round-up - 19 October

  CRT sector developments and deal news

  Credit Suisse is believed to be readying a Swiss corporate deal from its Elvetia programme. The issu...

  News    19 October 2018

• Market moves update

  Company hires and sector developments in structured finance

  Alternatives alliance DWS Group and Tikehau Capital have entered into an alliance, following Tike...

  Market moves    18 October 2018

• Primary energy

  European ABS primary market update

  The European primary RMBS market has come to life after the BPCE Home Loans FCT 2018 priced today (1...

  Market Reports    18 October 2018

• Latest SCI podcast now live

  SCI podcast episode two has been released

  SCI’s latest podcast is now live. This month the team discuss the African Development Bank...

  News    18 October 2018

• Steady subscription

  European ABS primary market update

  European primary ABS activity continues to be robust. In the RMBS sector, the BPCE Home Loans FCT 20...

  Market Reports    17 October 2018

• Default proxy

  Second income-contingent SLABS prepped

  The UK government is readying a £3.88bn securitisation backed by English plan 1 income-con...

  News    17 October 2018

• Market moves update

  Company hires and sector developments in structured finance

  CRT poll results The results from SCI’s ‘What’s in a name?’...

  Market moves    17 October 2018

• Second wave

  Synthetic CRE transactions launched

  Santander and NatWest have completed two commercial real estate risk transfer transactions and the m...

  News Analysis    15 October 2018

• Market moves update

  OFS equity investment OFS Credit Company has disclosed that it has invested in the equity tranches...

  Market moves    15 October 2018

• SCI Start the Week - 15 October

  A review of securitisation activity over the past seven days

  Market commentary Robust demand was seen in both the European and US CLO markets last week (SCI 9 O...

  News    15 October 2018

• Market moves - 12 October

  Company hires and sector developments in structured finance

  Cliff edge concerns ISDA has published a paper highlighting widespread concerns in Europe that the...

  Market moves    12 October 2018

• Greek GACS?

  Greek government considering asset protection scheme

  The Greek government is considering the creation of an asset protection scheme as part of the state&...

  News Analysis    12 October 2018

• Risk transfer round-up - 12 October

  CRT sector developments and deal news

  Deutsche Bank is believed to be prepping a trade finance transaction from its TRAFIN risk transfer p...

  News    12 October 2018

• Secondary ticking up

  European securitisation market update

  A handful of BWICs are out for the bid today as activity in the European ABS secondary market picks...

  Market Reports    12 October 2018

• Disparity highlighted

  Flood ILS impact gauged

  The damage from Hurricane Florence was estimated by Moody’s to be between US$38bn-US$50bn,...

  News Analysis    11 October 2018