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.

• Affordable loan credit insurance risk transfer closed

  Sector developments and company hires

  Affordable CIRT closed Fannie Mae has executed a new credit insurance risk transfer (CIRT) transac...

  Market moves    31 July 2019

• New podcast now live

  The operational steps to setting up a CRT and more...

  In this week's podcast, the team discuss the operational steps taken when putting t...

  News    31 July 2019

• Turning point

  Catastrophe bonds could see a redirection of spreads

  The past two years of record-breaking reinsurance losses, along with technically-driven spread widen...

  News Analysis    31 July 2019

• Winding up order issued for Clifden

  Company hires and sector developments

  Clifden wind up A winding-up order has been issued by the High Court of Justice of the Isle of Man...

  Market moves    29 July 2019

• SCI Start the Week - 29 July

  A review of securitisation activity over the past seven days

  Transaction of the week Unusual securitisation backed by music rights collateral (SCI 23 July) SE...

  News    29 July 2019

• BMO SRT launched

  BMO expands mid-market exposure

  Bank of Montreal (BMO) has completed a five-year financial guarantee that references US and Canadian...

  News    26 July 2019

• Mortgage firm completes residuals sale

  Company hires and sector developments

  Residual sale Charter Mortgages is set to sell its residual economic interest in the Precise Mortg...

  Market moves    26 July 2019

• Funding trade

  Trade finance fund utilises securitisation technology and assets

  Finance securitisation specialist Channel Capital Advisors has launched its first trade finance fund...

  News    25 July 2019

• Making an impact

  Debut impact ABS provides finance to EM microfinance & SME lenders

  ResponsAbility Investments has closed its debut US$175m impact securitisation, backed by loans to 26...

  News Analysis    25 July 2019

• Risk transfer round-up - 24 July

  CRT sector developments and deal news

  Banca Popolare dell ‘Alto Adige is believed to be readying a capital relief trade that is...

  News    24 July 2019

• Italian renaissance?

  Spike in new issuance supported for now

  The uptick in Italian ABS/MBS primary issuance in the past month or so gives the impression of a lon...

  News Analysis    24 July 2019

• Esoteric ABS head announced

  Sector developments and company hires

  Esoteric ABS head named MUFG has hired Keith Allman as md and head of esoteric ABS, effective Augu...

  Market moves    23 July 2019

• First-mover disadvantage

  NPL ABS downgrade structurally specific

  Scope Ratings has downgraded Elrond NPL 2017 after a performance review. The move appears to be a de...

  News    23 July 2019

• Rights firm hits play on ABS debut

  Unusual securitisation backed by music rights collateral

  SESAC, a music rights firm acquired by Blackstone in 2017, is marketing an inaugural whole-business...

  News    23 July 2019

• ABS head named

  Company hires and sector developments

  Euro ABS head appointed Santander has hired Francesco Dissera as head of continential Europe, secu...

  Market moves    22 July 2019

• Revving up

  Italian auto SRT completed

  BNP Paribas has completed a €950m significant risk transfer transaction of Italian auto loa...

  News    22 July 2019

• Offshore investment in Chinese ABS soars

  Investors find relative value in second largest ABS market

  Foreign investment in the Chinese ABS market is increasing exponentially, as routes to entr...

  News Analysis    22 July 2019

• Co-ceo named

  Sector developments and company hires

  Co-ceo named Värde Partners has named Ilfryn Carstairs as co-ceo, alongside co-founder Ge...

  Market moves    19 July 2019

• Squaring the circle

  CRT issuers struggling with borrower anonymity

  Capital relief trade issuers are attempting to anonymise loan-by-loan data in transactions, while si...

  News Analysis    19 July 2019

• Secondary pick-up?

  Aircraft ABS E-notes proliferate, despite residual value risks

  Equity participation in aircraft ABS is picking up, following the execution of transactions with bro...

  News Analysis    19 July 2019

• Risk transfer round-up - 19 July

  CRT sector developments and deal news

  Monte dei Paschi di Siena is rumoured to be prepping an Italian SME significant risk transfer transa...

  News    19 July 2019