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 - 23 February

  Deutsche Bank is said to be marketing another capital relief trade, dubbed CRAFT 2018-1. This follow...

  News    22 February 2018

• SCI Start the Week - 19 February

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

  Upcoming event SCI Risk Transfer & Synthetics Seminar - 13 March, New York SCI...

  News    19 February 2018

• 'Academic' SBBS to 'lack demand'

  A European Systemic Risk Board task force has published a paper arguing that European safe bonds, SB...

  News Analysis    16 February 2018

• SCI Start the Week - 12 February

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

  Pipeline It was yet another busy week of pipeline additions. There were nine ABS, 11 CLOs, three CM...

  News    12 February 2018

• Risk transfer round-up - 9 February

  Credit Suisse is rumoured to be re-tranching its existing risk transfer transactions, echoing recent...

  News    9 February 2018

• Navient preps 'debut' refi SLABS

  Navient is tapping the ABS market for the first time after acquiring online lender Earnest. Its late...

  News    8 February 2018

• Landmark sovereign ILS priced

  The IBRD has printed the largest sovereign risk transfer transaction ever and the second-largest cat...

  News    8 February 2018

• Gearing up for green

  Two pilots funded by Horizon 2020 - the EU programme for research and innovation ̵...

  News Analysis    6 February 2018

• SCI Start the Week - 5 February

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

  Pipeline The pipeline was dominated by ABS transactions last week, including a pair of structured s...

  News    5 February 2018

• 'No end in sight' for ILS growth

  Last year was unprecedented for the global ILS market, with record issuance of around US$10bn and no...

  News    2 February 2018

• Distressed exchange queried

  China Huarong Asset Management, one of China's largest state-owned distressed debt managers, yesterd...

  News Analysis    2 February 2018

• Call for transparency underlined

  A push for transparency is a common thread among European initiatives to reinvigorate the securitisa...

  News Analysis    2 February 2018

• APRA signals change in tone

  The Australian Prudential Regulatory Authority has set out its priorities for 2018, most notably wit...

  News    1 February 2018

• Auto giant expands Euro footprint

  LeasePlan is marketing its first French public auto lease ABS. The €653m transaction, dubbe...

  News    1 February 2018

• Bright start for UK ILS

  The first UK ILS launched last month, coinciding with the introduction of the nation's new ILS regul...

  News Analysis    1 February 2018

• US ABS diverted

  US ABS primary market activity is diverting attention away from secondary, but demand is st...

  SCIWire    31 January 2018

• Turkish auto deal prepped

  The first public Turkish ABS transaction, Driver Turkey Master (see SCI's deal pipeline), has been p...

  News    31 January 2018

• Euro secondary picking up

  Activity in the European securitisation secondary market is gradually picking up, albeit from a low...

  SCIWire    31 January 2018

• BEV auto ABS prepped

  Tesla is marketing an inaugural US$608.08m securitisation backed by 8,879 retail auto lease contract...

  News    30 January 2018

• Innovative portfolio guarantee inked

  The EIF has completed five synthetic securitisations with five Italian banks, in the context of the...

  News Analysis    30 January 2018

• SCI Start the Week - 29 January

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

  Pipeline The balance of additions to the pipeline last week closely followed that of the week befor...

  News    29 January 2018