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.

• 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

• CLO firm co-founder to retire

  Sector developments and company hires

  30-year CIRT debuts Fannie Mae has completed its sixth Credit Insurance Risk Transfer transaction...

  Market moves    2 October 2019

• ABS key to energy upgrade initiative?

  Securitisation could solve efficiency projects challenge

  The European Commission reports that 75% of Europe’s building stock is not energy efficien...

  News Analysis    2 October 2019

• B-piece service bulks out

  Sector developments and company hires

  B-piece service bulks out Greystone, has added Paul Smyth, Cary Williams, and&am...

  Market moves    30 September 2019

• SCI Start the Week - 30 September

  A review of securitisation activity over the past seven days

  Transaction of the week FirstKey Mortgage is marketing the first securitisation backed by manufactu...

  News    30 September 2019

• Full-stack SRT boost

  Opel, Sabadell achieve funding and capital relief

  Banco Sabadell and Opel Bank last week priced respectively full stack consumer and auto ABS deals &a...

  News Analysis    27 September 2019

• Polish debut

  STS ABS gains EIB support

  PKO Leasing has closed Polish Lease Prime 1, the largest-ever Polish securitisation. The PLN2.5bn re...

  News    26 September 2019

• Aussie auto ABS debut prepped

  Sector developments and company hires

  Aussie auto debut prepped The first public term securitisation backed by collateral originated by...

  Market moves    26 September 2019

• STS synthetics framework unveiled

  EBA publishes landmark consultation

  The EBA has published its long-awaited discussion paper on its proposals for an STS framework for sy...

  News Analysis    25 September 2019

• US CLO firm leadership shake-up

  Sector developments and company hires

  CLO firm makes md appointment MidOcean Partners has hired Natalya Michaels as md, focusing on mark...

  Market moves    25 September 2019

• Ceo appointed

  Sector developments and company hires

  Ceo appointed CAC Specialty has appointed Michael Rice as ceo, bringing more than 25 years of expe...

  Market moves    24 September 2019

• Master trust margins amended

  Sector developments and company hires

  Holmes Master Trust margins amended Moody’s comments that the proposed amendments to the...

  Market moves    23 September 2019

• SCI Start the Week - 23 September

  A review of securitisation activity over the past seven days

  Transaction of the week Deutsche Bank is marketing a £114m UK CMBS, dubbed Deco 2019-RAM....

  News    23 September 2019

• Law firm nabs SF vet

  Sector developments and company hires

  Law firm beefs up Orrick has hired structured finance lawyer Richard Hanson as a partner based in...

  Market moves    20 September 2019

• Investor reassurance

  Spanish Supreme Court ruling assuages NPL ABS investor concerns

  Spain’s Supreme Court has ruled that Spanish banks are obliged to wait until at least 12 m...

  News Analysis    20 September 2019

• Credit-granting guidance outlined

  "Bright-line" verification test still absent

  The EBA recently published an answer to a question posed by AFME in relation to Article 9(3) of the...

  News    19 September 2019

• CMBS NOI slowing

  Sector developments and company hires

  Aircraft ratings review Moody’s has published a new overview which examines ABS issued i...

  Market moves    19 September 2019

• Broader base

  New investors come to STS, but for what reason?

  A growing number of new investors, including bank treasuries, are participating in European...

  News    18 September 2019

• Drilling down

  Opportunities on offer in consumer, despite downturn concerns

  Consumer finance in the US is still a relatively untapped asset class among institutional investors,...

  News Analysis    17 September 2019

• CLO downgrade announced

  Sector developments and company hires

  CDS hire announced Axiom Alternative Investments has appointed Bedis Gharbi as senior portfolio ma...

  Market moves    16 September 2019

• SCI Start the week - 16 September

  A review of securitisation activity over the past seven days

  Transaction of the week Alior Leasing has launched a 12 month revolving cash securitisation of aut...

  News    16 September 2019