Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London
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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.


  • SCI Start the week - 16 September

    A review of securitisation activity over the past seven days

    Transaction of the week Alior Leasing has launched a 12 month revolving cash securitisation of aut...

    News    16 September 2019
  • Targeting opportunities

    Servicers continue hunt for Greek NPL ABS

    Hipoges Iberia, the Iberian servicer, is targeting opportunities in the Greek non-performing loan ma...

    News Analysis    13 September 2019
  • ECB stimulus announced

    Sector developments and company hires

    ECB stimulus package outlined The ECB has announced that it is cutting the interest rate on the de...

    Market moves    13 September 2019
  • Green ABS recommendations outlined

    Securitisation could be key tool in climate change battle

    Green securitisation can play an important role in helping to close the yearly investment gap of alm...

    News    12 September 2019
  • Risk transfer round-up - 12 September

    CRT sector developments and deal news

    Intesa Sanpaolo is rumoured to be prepping for 4Q19 two capital relief trades that reference respect...

    News    12 September 2019
  • Risk profile

    Basel 4 impact to vary based on business model

    The EBA last month published its advice on the implementation of Basel 4 in the EU, with its impact...

    News Analysis    12 September 2019
  • Polish ABS inked

    Securitisation features auto lease collateral

    Alior Leasing has launched a 12 month revolving cash securitisation of auto leasing loans and leases...

    News    11 September 2019
  • CLO firm incorporates ESG approach

    Company hires and sector developments

    Cayman CLO first Maples Group has supported the first ever US CLO to issue out of the Cayman Islan...

    Market moves    11 September 2019
  • Country md announced

    Company hires and sector developments

    Country md announced Jervis Smith has been appointed country md of Vistra Luxembourg, responsible...

    Market moves    10 September 2019
  • Maltese benefits

    Jurisdiction especially suited to innovative transport ABS

    Malta provides a legal and tax framework that provides the same benefits for the establishment of SP...

    News Analysis    10 September 2019
  • CLO firm bulks up

    Company hires and sector developments

    CLO firm bulks up Adrienne Dale has joined MidOcean Credit Partners a portfolio manager for its CL...

    Market moves    9 September 2019
  • SCI Start the Week - 9 September

    A review of securitisation activity over the past seven days

    Transaction of the week The EIF has launched two new funding initiatives to support SMEs in Europe,...

    News    9 September 2019
  • ILS deputy head hired

    Company hires and sector developments

    Blockchain standardisation steps taken The standardisation of blockchain technology, which the Int...

    Market moves    6 September 2019
  • SME initiatives inked

    EIF launches further guarantee programmes for businesses across Europe

    The EIF has launched two new funding initiatives to support SMEs in Europe, including a first-of-its...

    News    6 September 2019
  • Ceo appointed

    Sector developments and company hires

    Analytics head nabbed Merion Square Capital has hired Jeff Fraser as head of analytics, based at t...

    Market moves    5 September 2019
  • STS success?

    Market warms to STS, but threats hover on the horizon

    While STS lead to a dampening effect on ABS issuance at the start of the year, it is starting to bri...

    News    5 September 2019
  • Going concern?

    Synthetics could help address UTP burden

    Synthetic securitisation is being put forward as one way of proactively addressing the unlikely-to-p...

    News Analysis    5 September 2019
  • Structured credit vets nabbed

    Sector developments and company hires

    EBA makes STS digital move The EBA has announced that it has added the STS Regulation to its onlin...

    Market moves    4 September 2019
  • Tesco portfolio disposal sealed

    Company developments and sector hires

    Auto deal debut Oodle Financial Services is marketing an inaugural static cash securitisation of a...

    Market moves    3 September 2019
  • RAIT sale

    Company developments and sector hires

    Aussie bank secures warehouse line Yellow Brick Road (YBR), an Australian non-bank lender, has rec...

    Market moves    2 September 2019
  • SCI Start the Week - 2 September

    A review of securitisation activity over the past seven days

    Market commentary A new Fitch study shows that there is a wide range in trustee reported market val...

    News    2 September 2019