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.

• Serbian NPL disposal plans announced

  Sector developments and company hires

  Associate appointed Channel Capital Advisors has hired Pouya Jafari as an associate in London. He...

  Market moves    14 October 2019

• Auto SRT finalised

  Excess spread follows new regulatory guidance

  Santander has completed its eighth transaction from the Kimi programme. The €799m true sale...

  News    14 October 2019

• SCI Start the Week - 14 October

  A review of securitisation activity over the past seven days

  SCI CRT Seminar The line-up for SCI's 5th Annual Capital Relief Trades Seminar on 17 October has be...

  News    14 October 2019

• Meaningful constituent?

  Perceived difference between IRB, standardised banks narrowing

  Recent transactions imply that the difference between how IRB and standardised banks are perceived b...

  News Analysis    14 October 2019

• Hercules sets forth

  Greek asset protection scheme approved

  The European Commission has announced that the Greek government’s asset protection scheme...

  News Analysis    11 October 2019

• Framework focus

  EBA synthetics paper welcomed, despite concerns

  Risk transfer market participants have welcomed the EBA’s discussion paper on STS syntheti...

  News Analysis    11 October 2019

• Structured finance head appointed

  Sector developments and company hires

  EBA’s agenda released The EBA has published its 2020 agenda, detailing its work activiti...

  Market moves    11 October 2019

• CRT line-up finalised

  Awards ceremony to round off risk transfer event

  The line-up for SCI’s 5th Annual Capital Relief Trades Seminar on 17 October has been fina...

  News    11 October 2019

• Risk transfer round-up - 10 October

  Capital relief trade sector developments and deal news

  RBS is rumoured to be readying a capital relief trade backed by project finance loans. According to...

  News    10 October 2019

• Co-founder to depart

  Company hires and sector developments

  Co-founder moves on BlueMountain’s co-founder and co-president Stephen Siderow is set to...

  Market moves    10 October 2019

• Credit system "positive" for China SF deals

  Sector developments and company hires

  Credit system a positive for China SF deals China’s plan to establish a comprehensive, n...

  Market moves    9 October 2019

• Opening up

  Platform hopes to securitise global banks' trade finance assets

  While trade finance assets are of growing interest to investors, due to the attractive risk-return p...

  News Analysis    9 October 2019

• Bank leaves CDS committee

  Sector developments and company hires

  Bank leaves CDS committee Societe Generale has decided to leave the Credit Determinations Committe...

  Market moves    7 October 2019

• SCI Start the Week – 7 October

  A review of securitisation activity over the past seven days

  Transaction of the week RMF is marketing its first private RMBS backed by jumbo proprietary reverse...

  News    7 October 2019

• Rating challenges

  Limited appetite for rated senior mezz

  Issuers have typically refrained from seeking ratings on the senior mezzanine tranches of dual-tranc...

  News Analysis    7 October 2019

• Risk transfer round-up - 4 October

  Capital relief trade sector developments and deal news

  HSBC is rumoured to be readying a corporate capital relief trade for 4Q19. According to SCI data, th...

  News    4 October 2019

• Spanish SRT finalised

  Santander completes full-stack auto ABS

  Santander has priced a €555.5m true sale significant risk transfer transaction dubbed Santa...

  News    4 October 2019

• ILS acquisition announced

  Company hires and sector developments

  Acquisition announced Artex Risk Solutions has announced that it has reached agreement to acquire...

  Market moves    3 October 2019

• Nascent stages

  CRT mezz investor base needs time to develop

  The pace of growth of the risk transfer market is likely to be tied to the development of the synthe...

  News    3 October 2019

• Issuance wave

  Opel and Sabadell settle first full-stack SRTs

  Opel and Sabadell have settled their first full-stack significant risk transfer transactions. The tr...

  News Analysis    2 October 2019

• Autumn sales

  Italian NPL, UTP disposals continue apace

  Illimity Bank and a Cerberus Capital Management affiliate have acquired a second unlikely-to-pay loa...

  News    2 October 2019