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.

• Disparity highlighted

  Flood ILS impact gauged

  The damage from Hurricane Florence was estimated by Moody’s to be between US$38bn-US$50bn,...

  News Analysis    11 October 2018

• Primary surge

  European ABS primary market update

  European primary ABS activity is finally picking up. The PBD Germany Auto ABS transaction is expecte...

  Market Reports    8 October 2018

• SCI Start the Week - 8 October

  A review of securitisation activity over the past seven days

  Market commentary The European ABS primary market saw a lull in activity last week, which left some...

  News    8 October 2018

• Market moves - 5 October

  New hires and company developments in the structured finance sector

  Europe Apollo Global Management has named Brigitte Posch md, head of emerging markets in London. S...

  Market moves    5 October 2018

• Risk transfer round-up - 5 October

  CRT sector developments and deal news

  BNP Paribas is rumoured to be readying a replacement trade for a risk transfer transaction that it c...

  News    5 October 2018

• Heavy supply?

  European primary ABS market update

  A new RMAC UK non-conforming RMBS has been announced, while the BPCE Home Loans 2018 deal is expecte...

  Market Reports    5 October 2018

• Regulatory boost

  Positive prospects for project finance CRTs

  Santander has completed Fitzroy 2018-1 CLO, a financial guarantee and significant risk transfer tran...

  News Analysis    3 October 2018

• ABS lull

  European ABS primary market update

  The European ABS primary market is seeing a lull in activity, which is leaving some traders uncertai...

  Market Reports    3 October 2018

• SCI Start the Week - 1 October

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

  Conference SCI’s 4th Annual Capital Relief Trades Seminar is taking place on 16 October...

  News    1 October 2018

• Market moves - 28 September

  The latest hires and company developments in the structured finance market

  Canadian pension partnership Canada Pension Plan Investment Board (CPPIB) announced today...

  Market moves    28 September 2018

• Primary focus

  European ABS and RMBS market update

  Few BWICs were out for the bid in the European secondary ABS market this week, with light trading ac...

  Market Reports    28 September 2018

• Risk transfer round-up - 28 September

  CRT sector developments and deal news

  Santander is believed to be the third capital relief trade issuer readying a commercial real estate...

  News    28 September 2018

• Risk transfer return

  Standard Chartered completes trade finance CRT

  Standard Chartered has printed its first capital relief trade in three years, dubbed Trade Finance T...

  News    27 September 2018

• UCITS constrained

  Regulatory impact on mutual fund demand gauged

  The impact of the new EU securitisation regulation on mutual funds domiciled in Europe has sparked c...

  News Analysis    27 September 2018

• US CMBS 'not fixed'

  Wave of CMBS litigation may arise from systemic sector problems

  US CMBS litigation is currently in the spotlight, with one of the largest ever US fraud investigatio...

  News Analysis    26 September 2018

• CRT line-up finalised

  SCI seminar to assess regulatory threats and opportunities

  The line-up for SCI’s 4th Annual Capital Relief Trades Seminar – taking place on...

  News    25 September 2018

• SCI Start the Week - 24 September

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

  Pipeline RMBS dominated the newly-announced deals remaining in the pipeline by the end of last week...

  News    24 September 2018

• Market moves - 21 September

  All the latest company developments and new hires in the structured finance sector

  Acquisitions HPS Investment Partners has acquired Tålamod Asset Management. HPS will ret...

  Market moves    21 September 2018

• GACS expansion?

  UTP extension questioned

  The recent extension of the GACS guarantee scheme is expected to further fuel Italian non-performing...

  News Analysis    21 September 2018

• Irish RMBS focus

  European ABS market update

  A rare Irish non-conforming RMBS has caught the attention of European ABS market participants, follo...

  Market Reports    18 September 2018

• Revised NPL templates published

  Insolvency data rendered more dynamic

  The EBA last week published a revised version of its standardised non-performing loan data templates...

  News Analysis    17 September 2018