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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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 -
MBS overvaluation case settled
Sector developments and company hires
Overvaluation case settled The US SEC has accepted an offer of settlement from Semper Capital Manag...
Market moves 1 May 2020 -
Risk transfer round-up - 1 May
CRT sector developments and deal news
Deutsche Bank is rumoured to be readying a large corporate capital relief trade for 2Q20. The bank&a...
News 1 May 2020 -
Targeted action
Wholesale ratings downgrades questioned
The raft of negative rating actions currently hitting the securitisation market is perceived to be d...
News Analysis 1 May 2020 -
Landmark guidance
Implicit support guidelines published
The EBA has published landmark implicit support guidelines as part of its post-coronavirus intervent...
News Analysis 1 May 2020 -
Unlocking capital
Premod Thomas, ceo of Bayfront Infrastructure Management, answers SCI's questions
Q: Bayfront Infrastructure Management is seeking to help address an infrastructure financing gap in...
The Structured Credit Interview 30 April 2020 -
Prudential flexibility reiterated
Sector developments and company hires
Prudential flexibility reiterated The European Commission has adopted a package to help facilitate...
Market moves 29 April 2020 -
Growth phase
Asian infrastructure loans eyed
Singapore-based Clifford Capital has established a holding company structure under Clifford Capital...
News 29 April 2020 -
PEFF funds allocated
Sector developments and company hires
PEFF funds allocated The steering body of the World Bank’s Pandemic Emergency Financing F...
Market moves 28 April 2020 -
Securitisation support
AOFM initiatives to boost volumes
The Australian Office of Financial Management has acted quickly to support the Australian securitisa...
News Analysis 28 April 2020 -
Opportunistic buying
Covid-19 kicks off secondary SRT market
Capital relief trade secondary market activity has received a boost from the coronavirus fallout as...
News Analysis 28 April 2020 -
European SME ABS struggling
Sector developments and company hires
European SME ABS struggling Coronavirus-driven disruption is creating financial difficulties for...
Market moves 27 April 2020 -
SCI Start the Week - 27 April
A review of securitisation activity over the past seven days
Last week's stories Accessing liquidity The role technology plays in securitising trade finance...
News 27 April 2020 -
Inventory ABS prepped
Sector developments and company hires
Inventory ABS prepped Fintech platform Supply@ME Capital (SYME) has entered into an agreement with...
Market moves 24 April 2020 -
NPL ABS eyed
Greek banks target HAPS, despite virus crisis
Greek banks are targeting over €30bn of non-performing loan securitisations in 2020 via the...
News Analysis 24 April 2020 -
Underperformance underlined
Italian NPL ABS ratings hit
Moody’s has downgraded and placed on review for further downgrade the ratings of two notes...
News 24 April 2020 -
Non-agency CMBS goes it alone
The non-agency CMBS market is an orphan of the storm
While a raft of measures to aid liquidity and forestall insolvency have been introduced by the US au...
News Analysis 24 April 2020 -
Recovery boost
Weatherford revolvers fully repay amid negative outlook
A new case study from SCI has revealed that oil and gas firm Weatherford International is referenced...
News Analysis 24 April 2020 -
Grandfathering for Dutch CLO issuers
Sector developments and company hires
Grandfathering for Dutch CLO issuers The Dutch tax authorities have provided written confirmation t...
Market moves 23 April 2020 -
GSE advancing obligations aligned
Sector developments and company hires
GSE advancing obligations aligned The US FHFA has aligned Fannie Mae's and Freddie Mac&...
Market moves 22 April 2020 -
Accessing liquidity
Christoph Gugelmann, co-founder of Tradeteq, highlights the role technology plays in securitising tr...
Access to liquidity is becoming more important than ever; many businesses – both large and...
Talking Point 22 April 2020