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
Credit system upgraded The People's Bank of China’s Credit Reference Center last...
Market moves 23 January 2020 -
Climate fund launched
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News 23 January 2020 -
Risk transfer round-up - 23 January
CRT sector developments and deal news
Caixabank is rumoured to be prepping a consumer SRT for this year. The lender printed its last trans...
News 23 January 2020 -
Bespoke service
Emma-Jane Fulcher, founder of Grovewood Capital Consultancy, answers SCI's questions
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Provider Profile 23 January 2020 -
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Market moves 22 January 2020 -
Risk transfer round-up - 22 January
CRT sector developments and deal news
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News 22 January 2020 -
CEE SME guarantee increased
Sector developments and company hires
EMEA Alvarez & Marsal has launched a European debt advisory practice with the appointment...
Market moves 21 January 2020 -
DSB wind-down begins
Dutch bank to exercise first ABS call option and aims for more
Bankrupt DSB Bank is preparing for the possible sale of its loan portfolio by winding down its secur...
News 21 January 2020 -
SCI Start the Week - 20 January
A review of securitisation activity over the past seven days
Stories of the week Consumer boost Santander completes innovative SRTs Under pressure US stu...
News 20 January 2020 -
'No Data' threshold consultation underway
Sector developments and company hires
C-PACE partnership Eyzenberg & Company and Greenworks Lending have formed Eyzenberg Green...
Market moves 17 January 2020 -
FFELP transition legislation mooted
Sector developments and company hires
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Market moves 16 January 2020 -
Consumer boost
Santander completes innovative SRTs
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News 16 January 2020 -
Aircraft equity investment disclosed
Sector developments and company hires
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Market moves 15 January 2020 -
Hong Kong ABS recommendations released
Sector developments and company hires
Alternative risk transfer Arthur J Gallagher has increased its interest in Capsicum Reinsurance B...
Market moves 14 January 2020 -
Under pressure
US student loan ABS holding firm so far
US student loan ABS faces a difficult year from both technical and political pressures. However, the...
News Analysis 14 January 2020 -
SCI Start the Week - 13 January
A review of securitisation activity over the past seven days
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News 13 January 2020 -
Landmark quake bond closed
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DLT legal analysis published ISDA, Clifford Chance, R3 and the Singapore Academy of Law have publ...
Market moves 13 January 2020 -
Landmark CLN finalised
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News 10 January 2020 -
Auto debut
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News 10 January 2020 -
CLO losses expected after Constellis default
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Market moves 10 January 2020 -
Leasing guarantee
EFL completes capital relief trade
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News 9 January 2020