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.


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    Sector developments and company hires

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    Market moves    21 November 2019
  • Ramping up

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    Standard Chartered has completed a US$135m CLN that references a US$1.5bn portfolio of US and Europe...

    News    21 November 2019
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    Market moves    20 November 2019
  • Hercules tapped

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    News    20 November 2019
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    Market moves    19 November 2019
  • Growth surge?

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    News    19 November 2019
  • US CRT pick-up?

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    News Analysis    18 November 2019
  • Structured credit head announced

    Sector developments and company hires

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    Market moves    18 November 2019
  • SME programmes launched

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    News    18 November 2019
  • SCI Start the Week - 18 November

    A review of securitisation activity over the past seven days

    Transaction of the week UniCredit has completed what is believed to be the largest European ABS tra...

    News    18 November 2019
  • Full-stack trend continues

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    News    15 November 2019
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    Market moves    15 November 2019
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    News    15 November 2019
  • ERLS returns

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    News    15 November 2019
  • Landmark ABS inked

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    News    14 November 2019
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    News    14 November 2019
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    Market moves    13 November 2019
  • Performance tracked

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    News    12 November 2019
  • First RMBS tied to AONIA marketing

    Company hires and sector developments

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    Market moves    11 November 2019
  • SCI Start the Week - 11 November

    A review of securitisation activity over the past seven days

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    News    11 November 2019
  • MPL ABS breaches liquidity covenant

    Sector developments and company hires

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    Market moves    8 November 2019