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.

• Risk transfer round-up - 16 November

  Capital relief trade sector developments and deal news

  Deutsche Bank is rumoured to be executing a bilateral trade finance capital relief trade from its TR...

  News    16 November 2018

• Selling stagnation

  European ABS market update

  Activity in the European ABS primary and secondary markets has slowed this week, with volumes genera...

  Market Reports    16 November 2018

• CMBS desk launched

  Sector developments and company hires in structured finance

  Europe Simmons & Simmons has hired James Grand to lead its CLO offering. Grand was previou...

  Market moves    15 November 2018

• Dry powder

  International ABS market update

  Pepper Group is prepping an Australian RMBS that is expected to be sized at A$500m-equivalent and in...

  Market Reports    15 November 2018

• Dual speed

  Standard Chartered follows with tranche carve-up

  Standard Chartered has completed a US$297.5m financial guarantee that references a US$3.5bn trade fi...

  News Analysis    14 November 2018

• NPL transaction markets

  Sector developments and company hires in structured finance

  NPL deal markets Banco Santander Totta is in the market with Hefesto STC (Guincho), a €98...

  Market moves    13 November 2018

• Home rule

  Chicago debuts tax duo

  The City of Chicago last month completed two issuances totalling US$1.3bn through a first-of-its-kin...

  News Analysis    13 November 2018

• SCI Start the Week - 12 November

  A review of securitisation activity over the past seven days

  Market commentary The Dilosk No. 2 Irish legacy RMBS was in focus in the European primary market la...

  News    12 November 2018

• Stress test

  IFRS 9 impact limited

  The EBA’s recent stress tests point to a limited capital impact from the implementation of...

  News Analysis    9 November 2018

• Unpredictable factors

  Macro and micro challenges highlighted

  European market participants are facing three unpredictable factors in 2019, all of which will drive...

  News Analysis    9 November 2018

• CLO investor poached

  Company hires and sector developments in structured finance

  Acquisitions LibreMax Capital has entered into an agreement to acquire Trimaran Advisors and certa...

  Market moves    9 November 2018

• Alternative model mooted

  SCI's MPL Securitisation Seminar line-up finalised

  An alternative marketplace lending model could gain traction, thanks to the OCC fintech charter (SCI...

  News    9 November 2018

• Leveraged loan CRT prepped

  Risk transfer sector developments and deal news

  Deutsche Bank is believed to be readying a leveraged loan capital relief trade for 4Q18. According t...

  News    9 November 2018

• CRE platform acquired

  Sector developments and company hires in structured finance

  Acquisitions AXA Investment Managers has expanded its global debt platform through the acquisition...

  Market moves    8 November 2018

• Resolution framework

  EBRD expands Greek NPL foothold

  The EBRD is boosting its foothold in the Greek non-performing loan market with co-investments in Pir...

  News Analysis    8 November 2018

• Global head hired

  Company hires and sector developments in structured finance

  Dechert has hired Cameron Mitcham as a partner in London at the firm’s global finance prac...

  Market moves    6 November 2018

• Housing practice pinched

  Company hires and sector developments in structured finance

  Fund launch Trium Capital is partnering with Ellington Global Asset Management to launch the Ellin...

  Market moves    5 November 2018

• Strong technicals

  European RMBS and CMBS primary market update

  Technicals remain strong in the European CMBS and RMBS primary markets. The Dilosk No. 2 deal is i...

  Market Reports    5 November 2018

• SCI Start the Week - 5 November

  A review of securitisation activity over the past seven days

  Transaction of the week Waterfall Asset Management is marketing the first publicly-rated RMBS backe...

  News    5 November 2018

• Reverse mortgage deal prepped

  First reverse mortgage RMBS since 2007 markets

  Waterfall Asset Management is marketing the first publically-rated RMBS backed by reverse mortgages...

  News    2 November 2018

• Market moves update

  Company hires and sector developments

  ACIS resets due The Chapter 11 trustee has filed a third amended joint plan for Acis Capital Manag...

  Market moves    2 November 2018