Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London
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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.


  • NPL SPV established

    Barclays financing portfolio acquisition

    Barclays, Varde Partners and Guber Banca have acquired a €1.4bn non-performing loan portfol...

    News    12 July 2018
  • SCI Start the Week - 9 July

    A look at the major activity in structured finance over the past seven days

    Pipeline With 4 July having a typically big impact on the issuance calendar, the pipeline was ligh...

    News    9 July 2018
  • Article 14 negotiations begin

    Amendment to reduce securitisation compliance requirements

    Trilogue discussions between the European Parliament, the European Commission and the European Counc...

    News    9 July 2018
  • Landmark UTP deal completed

    Inaugural large-scale, pure UTL transaction inked

    Bain Capital Credit has acquired a portfolio of unlikely-to-pay (UTP) corporate loans, dubbed Projec...

    News    4 July 2018
  • SCI Start the Week - 2 July

    A look at the major activity in structured finance over the past seven days

    Pipeline The pipeline has been dominated by UK transactions ahead of the Independence Day holiday....

    News    2 July 2018
  • Barclays engineers comeback

    Further impetus added to Colonnade programme

    Barclays has returned to the risk transfer market with Colonnade Global 2018-1, a £34.2m c...

    News    2 July 2018
  • Green ABS branches out

    Commercial PACE and renewables gain traction as green ABS expands

    PACE is catching on in both the US and Europe. An April whitepaper from the New York State Energy Re...

    News Analysis    29 June 2018
  • Multi-seller GACS deals pending

    Large portfolio sizes facilitate critical mass

    Multi-seller GACS securitisations brought by smaller Italian banks are emerging, with at least two t...

    News Analysis    29 June 2018
  • Market moves - 29 June

    CLO manager acquired THL Credit Advisors has acquired the collateral management business of Kramer...

    Market moves    29 June 2018
  • Trade finance CRTs gather pace

    Transactions offer multiple benefits to issuers and investors

    Interest is growing in synthetic securitisations backed by trade finance receivables - collateral th...

    News Analysis    28 June 2018
  • NPL issuance surging

    Italian lenders look to beat GACS deadline

    Banco di Sardegna has completed a €253m non-performing loan securitisation called 4Mori Sar...

    News Analysis    28 June 2018
  • Securitisation to support PPP growth

    The Argentinian government recently announced plans for a number of infrastructure projects and has...

    News Analysis    26 June 2018
  • SCI Start the Week - 25 June

    A look at the major activity in structured finance over the past seven days

    Pipeline The securitisations remaining in the pipeline at the end of last week were fairly evenly s...

    News    25 June 2018
  • PRA's tough stance continues

    Banks have been reviewing the PRA’s significant risk transfer (SRT) consultation, which pr...

    News Analysis    22 June 2018
  • Mortgage SRT booster voted down

    MEP Caroline Nagtegaal’s amendment 596 to Article 234 of the CRR was rejected by the Europ...

    News Analysis    22 June 2018
  • Risk transfer round-up - 22 June

    Intesa Sanpaolo is rumoured to be prepping a capital relief trade referencing corporate assets, with...

    News    22 June 2018
  • Market moves - 22 June

    Europe Axa Investment Managers has hired Hans Stoter to global head of fixed income and interim he...

    Market moves    22 June 2018
  • Questions remain over insurer participation

    The European Commission recently published the Delegated Act on Solvency 2, which improves the capit...

    News Analysis    21 June 2018
  • PE players driving growth

    Australian ABS and RMBS issuance saw record volumes of over A$8bn and A$37bn respectively in 2017, a...

    Talking Point    19 June 2018
  • Capital computation

    The complexity involved in executing capital relief trades is driving increased focus on the operati...

    News Analysis    18 June 2018
  • SCI Start the Week - 18 June

    A look at the major activity in structured finance over the past seven days

    Pipeline A mixed bag of securitisations remained in the pipeline at the end of last week. ABS once...

    News    18 June 2018