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.

• 2020 vision

  Looking for relative value in European securitisation

  Next year seems likely to present structured finance investors with even greater challenges in the s...

  News Analysis    11 December 2019

• IT solution

  Infrastructure ABS could hold the key to a brighter future for Europe's banks

  The European banking sector is struggling under the burden of shrinking profits and growing costs, y...

  News Analysis    9 December 2019

• SCI Start the Week - 9 December

  A review of securitisation activity over the past seven days

  Transaction of the week NIBC recently priced the first fully-compliant ESG CLO, North Westerly VI,...

  News    9 December 2019

• Mutual agreement

  BPPB SRT debuts

  Further details have emerged about the EIF and Banca Popolare di Puglia e Basilicata’s (BP...

  News    9 December 2019

• Core qualities

  Caroline Chen, svp and research analyst at Income Research & Management, answers SCI's quest...

  Q: How and when did Income Research & Management become involved in the securitisation marke...

  The Structured Credit Interview    9 December 2019

• Turbo feature for CLO reset

  Sector developments and company hires

  Early upgrade DBRS Morningstar has taken the unusual step of upgrading from double-B (low) to dou...

  Market moves    9 December 2019

• ABS focus

  Music, sports, entertainment firm grows securitisation capabilities

  23 Capital recently made a number of hires to boost their securitisation capabilities, signalling th...

  News Analysis    6 December 2019

• Grattan refinanced

  Bank of Ireland completes CRT

  Bank of Ireland has originated a €265m funded and unfunded financial guarantee that referen...

  News    6 December 2019

• Alternative appetite

  Euro CMBS specialist property exposure to rise

  Appetite for European CMBS secured by specialist or alternative assets is expected to grow in 2020,...

  News    6 December 2019

• ABS head retired

  Sector developments and company hires

  ABS head retires Janus Henderson’s head of ABS investment Ed Panek has now retired from...

  Market moves    6 December 2019

• Moving into the mainstream

  Booming aviation ABS sector shakes off esoteric label?

  Aviation ABS issuance has seen strong growth, with 2019 set to be a bumper year and investors also d...

  News Analysis    5 December 2019

• Cigarette slump?

  Dispute revenue to offset declining MSA cashflows

  US cigarette shipments have declined by an average of 3.2% per year since 2000 and are expected to d...

  News    4 December 2019

• Credit analysts poached

  Sector developments and company hires

  Credit analysts poached Cairn Capital has appointed José Ferrero and Vihren Jordanov as...

  Market moves    4 December 2019

• SCI Start the Week - 2 December

  A review of securitisation activity over the past seven days

  Transaction of the week Credit Agricole is marketing a securitisation of Dutch consumer loans origi...

  News    2 December 2019

• Full-stack debut

  BDK completes first auto SRT

  Bank Deutsches Kraftfahrzeuggewerbe (BDK) has debuted its first full-stack capital relief trade. Dub...

  News    2 December 2019

• Spanish SRT inked

  Banco Cetelem completes full-stack auto ABS

  Banco Cetelem has completed the first full-stack Spanish auto significant risk transfer transaction...

  News    2 December 2019

• Euro AM promotes three

  Sector developments and company hires

  AM promotes three Alcentra has promoted Daniel Fabian to president and coo. In this role, he will...

  Market moves    2 December 2019

• Dutch consumer ABS prepped

  Transaction features several departures from previous deals

  Credit Agricole is marketing a securitisation of Dutch consumer loans originated via subsidiaries of...

  News    29 November 2019

• Euro lending support announced

  Sector developments and company hires

  Euro lending support announced The EIF has committed €100m to online lending marketplace...

  Market moves    28 November 2019

• Italian market developments 'positive' for ABS

  Sector developments and company hires

  Italian market developments ‘positive’ for ABS Recent market developments in i...

  Market moves    27 November 2019

• Indian innovation

  Diverse Indian ABS market sees growing, global investor base

  The Indian securitisation market continues to grow and develop, with an increasingly global investor...

  News Analysis    26 November 2019