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.

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  The European Commission’s long-awaited regulatory technical standards on securitisation di...

  News Analysis    1 November 2019

• SRT report pending

  EBA to propose harmonised excess spread treatment

  The EBA is set to propose a harmonised regulatory treatment for excess spread in significant risk tr...

  News Analysis    1 November 2019

• SCI Capital Relief Trades Awards 2019

  Law Firm of the Year: Clifford Chance

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  News    1 November 2019

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  Market moves    31 October 2019

• Risk transfer round-up - 31 October

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  News    31 October 2019

• SCI Capital Relief Trades Awards 2019

  Investor of the Year: European Investment Fund

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  News    31 October 2019

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  Market moves    30 October 2019

• SCI Capital Relief Trades Awards 2019

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  News    30 October 2019

• SCI Capital Relief Trades Awards 2019

  Impact Deal of the Year: Room2Run

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  News    29 October 2019

• SCI Capital Relief Trades Awards 2019

  Transaction of the Year: Syon Securities 2019

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  News    28 October 2019

• SCI Start the Week - 28 October

  A review of securitisation activity over the past seven days

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  News    28 October 2019

• CMBS refi inked

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  Market moves    25 October 2019

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• One-stop shop

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  News Analysis    25 October 2019

• SCI Capital Relief Trades Awards 2019

  Arranger of the Year: Credit Suisse

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  News    25 October 2019

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  Market moves    24 October 2019

• SCI Capital Relief Trades Awards 2019

  Issuer of the Year: Santander

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  News    24 October 2019

• GACS structured

  Mortgage NPL ABS prepped

  UniCredit is in the market with a non-performing loan securitisation that references €6bn -...

  News    23 October 2019

• Fully equipped

  US equipment ABS booming in primary and secondary

  With two deals pricing last week (Ascentium Equipment Receivables 2019-2 and CNH Equipment Trust 201...

  News    22 October 2019

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  Company hires and sector developments

  Chapter 11 filing Highland Capital Management LP (HCMLP) has commenced voluntary Chapter 11 procee...

  Market moves    22 October 2019