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.


  • 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