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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 - 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
  • Operational issues

    CRT key steps outlined

    The operational issues involved in prepping a risk transfer transaction are often overlooked. Indeed...

    News Analysis    19 July 2019
  • Czech mate

    SME CRT inked

    The EIB, the EIF and Česká spořitelna (ČS) have inked a capita...

    News    18 July 2019
  • Additional resources for disclosure published

    Sector developments and company hires

    Agri-investing appointment Arable Capital Partners has appointed Matt Reus a vp in the Bellevue, W...

    Market moves    18 July 2019
  • Bank fined over MBS trading failures

    Company hires and sector developments

    Agency heads announced Morningstar Credit Ratings (MCR) has named Erin Stafford as head of the com...

    Market moves    17 July 2019
  • Growth phase

    Debut trade receivables deal launched, expansion eyed

    Stenn International has launched a debut US$200m securitisation with Natixis, backed by internationa...

    News Analysis    17 July 2019
  • Fund founder guilty of fraud

    Company hires and sector developments

    African solar plan approved The African Development Bank Group has approved an innovative multinat...

    Market moves    15 July 2019
  • Green investment partnership launched

    Company hires and sector developments

    Green investment Amundi and the EIB have signed a partnership to launch the Green Credit Continuum...

    News    12 July 2019
  • Pros and cons

    STS conversion benefits weighed

    The incentives for converting pre-2019 securitisations into STS-compliant deals differ across seller...

    News Analysis    12 July 2019
  • Mixed bag

    Hybrid M&A, ABS transactions on the rise

    Following the financial crisis, a growing number of financial assets have fallen into the hands of n...

    News Analysis    11 July 2019
  • Risk transfer round-up - 11 July

    CRT sector developments and deal news

    Standard Chartered is believed to be readying a corporate capital relief trade that is expected to c...

    News    11 July 2019
  • Novel approach

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    Investors and servicers in the Italian non-performing loan market are targeting a new approach to Re...

    News Analysis    11 July 2019
  • Investment chief appointed

    Sector developments and company hires

    Business Mortgage Finance 6 update Business Mortgage Finance 6, the issuer, has informed noteholde...

    Market moves    10 July 2019
  • Renewable debut

    Green ABS could be first of many

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    News    10 July 2019
  • New deals surge

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    News Analysis    10 July 2019
  • Spanish exposure

    Rare NPL RMBS prepped

    Rarely seen Spanish assets are behind the latest non-performing loan RMBS currently marketing. At th...

    News    10 July 2019
  • SRT trio

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    Santander has completed three SME significant risk transfer transactions that total €940.6m...

    News    9 July 2019
  • Senior CLO trader poached

    Sector developments and company hires

    CLO expert nabbed BlueBay has appointed Alex Navin to join its structured credit team as...

    Market moves    8 July 2019
  • Greencoat Investments notice received

    Sector developments and company hires

    BUMF 6 application discontinued A notice of discontinuance from Greencoat Investments has been rec...

    Market moves    5 July 2019
  • Auto SRT completed

    Innovative direct CLN structure debuts

    Santander has completed its first synthetic significant risk transfer transaction that references a...

    News Analysis    5 July 2019
  • EBRD appoints Greece, Cyprus lead

    Company hires and sector developments

    EBRD hires NPL vet The EBRD has appointed Andreea Moraru to lead its operations in Greece and Cypr...

    Market moves    4 July 2019