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.

• Market moves - 13 April

  Aircraft ABS on watch KBRA has placed the class A, B and C notes of the US$411m Prop 2017-1 ABS o...

  Market moves    13 April 2018

• Microfinance ABS regroups after defaults

  A number of Indian microfinance loan securitisations recently defaulted, halting a trend of strong p...

  News Analysis    13 April 2018

• Italian NPL securitisations outpace loan sales

  Non-performing loan securitisation volume has outpaced outright sales in Italy, as banks seek to ben...

  News Analysis    12 April 2018

• Provisioning impact muted

  The ECB and European Commission have both put forward new rules for minimum loss coverage, which are...

  News Analysis    11 April 2018

• Financial guarantee ILS debuts

  Build America Mutual Assurance Company (BAM) is in the market with what is believed to be the first...

  News    10 April 2018

• SCI Start the Week - 9 April

  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 domin...

  News    9 April 2018

• Market moves - 6 April

  Europe CSC has hired Robert Berry as chairman of its capital markets group in London and Debra Par...

  Market moves    6 April 2018

• Market moves - 29 March

  Europe Man Group has hired Simon Finch as cio of credit at Man GLG, its discretionary investment m...

  Market moves    29 March 2018

• Synthetic NPLs gain traction

  The ECB’s latest non-performing loan provisioning guidelines are expected to trigger incre...

  News Analysis    29 March 2018

• Euro ABS/MBS busy

  European ABS/MBS secondary market activity has picked up this week. “It’s been...

  SCIWire    29 March 2018

• Innovative Dutch SRT completed

  Rabobank has completed an innovative Dutch significant risk transfer (SRT) deal with the EIF. The &a...

  News    28 March 2018

• Seeking to scale

  The capital relief trades (CRT) market suffers from a material gap between banks’ needs an...

  News Analysis    26 March 2018

• Market moves - 23 March

  CDS clearing developments Intercontinental Exchange has transitioned index CDS open interest from...

  News    23 March 2018

• Non-traditional ABS growth to continue

  There was record ABS issuance in 2017, with the most since the crisis. Non-traditional ABS accounted...

  News Analysis    23 March 2018

• Risk transfer round-up - 23 March

  Credit Suisse is believed to have priced a capital relief trade referencing a loan book originated i...

  News    23 March 2018

• Grappling with uncertainty

  Capital relief trade issuers are incorporating structural features highlighted in the EBA&a...

  News Analysis    23 March 2018

• Increase in liquidity 'hard to measure'

  Liquidity in structured products is difficult to quantify, and perhaps even to define. Whichever way...

  News Analysis    22 March 2018

• Marketplace lending now 'mainstream'

  The US consumer economy’s long recovery has now become well established and access to cred...

  News Analysis    22 March 2018

• Greek lease ABS prepped

  Hertz franchisee Autohellas is in the market with AutoWheel Securitisation, an ABS backed by operati...

  News    19 March 2018

• SCI Start the Week - 19 March

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

  Pipeline There was a somewhat more measured pace of pipeline additions last week. The final count...

  News    19 March 2018

• Market moves - 16 March

  EMEA Citigroup has appointed Laura Coady to the newly created position of head of EMEA, structured...

  Market moves    16 March 2018