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.

• 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

• IFRS 9 benefit welcomed

  The first-time adoption of IFRS 9 has had a muted impact on bank capital ratios and this has been re...

  News Analysis    15 June 2018

• Risk transfer round-up - 15 June

  Deutsche Bank is expected to execute two capital relief trades this month. One is a corporate deal f...

  News    15 June 2018

• CRI explained

  Stephen Taylor, head of structured and capital solutions EMEA at Aon Risk Solutions, outlines the be...

  Q: What is credit risk insurance? A: Credit risk insurance (CRI) is used to transfer credit risk...

  Talking Point    15 June 2018

• Market moves - 15 June

  CLO name change The name of Babson Euro CLO 2014-1 has been changed to Barings Euro CLO 2014-1. Th...

  Market moves    15 June 2018

• Creval completes second NPL deal

  Credito Valtellinese (Creval) has completed a €586.35m non-performing loan securitisation w...

  News    13 June 2018

• Bankruptcy law brings transparency

  India’s landmark Insolvency and Bankruptcy Code (IBC) has inflicted heavy losses on the na...

  News    11 June 2018

• SCI Start the Week - 11 June

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

  Pipeline Non-auto related ABS deals have dominated the pipeline recently. Indeed, transactions repr...

  News    11 June 2018

• Market moves - 8 June

  Acquisition Angel Oak Commercial Lending (AOCL) has acquired a controlling interest in Cherrywood...

  Market moves    8 June 2018

• UTP loans raise AI prospects

  Resolving unlikely to pay (UTP) loans is becoming more important for Italian banks, but the challeng...

  News    7 June 2018

• Start-up launches to solve structured product problems

  Banks remain too big to fail and there is still opacity surrounding securitisation and structured pr...

  Provider Profile    7 June 2018

• Deal 'will happen' despite political risk

  Banco BPM has announced the transferral of a €5.1bn gross nominal value (GNV) portfolio of...

  News Analysis    6 June 2018

• Chinese issuance growing strongly

  Chinese securitisation issuance surged to a record high in 2017 but significant challenges remain. O...

  News Analysis    4 June 2018

• SCI Start the Week - 4 June

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

  Pipeline ABS and RMBS made up the majority of the transactions remaining in the pipeline at the end...

  News    4 June 2018

• Consultant activity surveyed

  Investment consultants for long-term investors such as pension funds haven’t been as activ...

  News Analysis    1 June 2018

• Euro mortgage market heating up

  A thriving European mortgage market is attracting foreign investors seeking to capitalise on the low...

  Provider Profile    1 June 2018

• Market moves - 1 June

  BTL RMBS planned UK Mortgages and TwentyFour Asset Management have acquired a high-quality pool o...

  Market moves    1 June 2018

• RRBs on the rise?

  Signs of an uptick in the US rate reduction bond (RRB) market are emerging, albeit the sector remain...

  News Analysis    30 May 2018

• GACS issuance surge expected

  Investor appetite for GACS non-performing loan securitisations will be tested this year, as a strong...

  News Analysis    29 May 2018

• NPL financing hurdle highlighted

  Financing non-performing loan resolutions remains the missing piece in efforts to tackle Europe&...

  News Analysis    25 May 2018

• Risk transfer round-up - 25 May

  Standard Chartered is expected to roll over two existing trade finance capital relief trades in 2H18...

  News    25 May 2018