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.

  • Tough approach continues

    RTS leaves disclosure challenges unresolved

    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

    Clifford Chance has been involved in the capital relief trades market from the beginning and the pas...

    News    1 November 2019
  • GARC deal expected

    Sector developments and company hires

    EMEA Florent Trouiller has joined Norton Rose Fulbright as a partner in its Luxembourg office. Tr...

    Market moves    31 October 2019
  • Risk transfer round-up - 31 October

    CRT sector developments and deal news

    Santander is rumoured to be readying two synthetic securitisations of consumer loans. The issuer has...

    News    31 October 2019
  • SCI Capital Relief Trades Awards 2019

    Investor of the Year: European Investment Fund

    The European Investment Fund (EIF) provides an unparalleled level of support to the capital relief t...

    News    31 October 2019
  • Untapped potential?

    New style reinsurance vehicles yet to take off

    Almost a year since launch risk-remote reinsurance capacity vehicle Vermeer Re is yet to have any di...

    News    31 October 2019
  • Anti-NSDA provisions welcomed

    Sector developments and company hires

    Anti-NSDA provisions welcomed The inclusion of anti-net short debt activism (NSDA) provisions in of...

    Market moves    30 October 2019
  • SCI Capital Relief Trades Awards 2019

    Innovation of the Year: FCT Jupiter 2019

    Societe Generale’s US$3.4bn FCT Jupiter 2019 transaction has won SCI’s Innovatio...

    News    30 October 2019
  • SCI Capital Relief Trades Awards 2019

    Impact Deal of the Year: Room2Run

    As the first-ever synthetic impact securitisation with a multilateral development bank (MDB), Room2R...

    News    29 October 2019
  • SCI Capital Relief Trades Awards 2019

    Transaction of the Year: Syon Securities 2019

    Lloyds Banking Group’s synthetic UK RMBS Syon Securities 2019 was motivated by prudent ris...

    News    28 October 2019
  • SCI Start the Week - 28 October

    A review of securitisation activity over the past seven days

    Transaction of the week Fannie Mae has priced its first credit risk transfer transaction referencin...

    News    28 October 2019
  • CMBS refi inked

    Sector developments and company hires

    CLO firm names IR head Pemberton has hired Cary Gibson to the role of director and head of investo...

    Market moves    25 October 2019
  • SCI's latest podcast is now live!

    The editorial team discuss the hottest topics in securitisation today...

    In this month's exciting edition of the SCI podcast, the team talks about standardised banks...

    News    25 October 2019
  • One-stop shop

    New firm offers range of innovative securitised products

    Gessler Capital was recently launched with a view to meet increasing demands from issuers that want...

    News Analysis    25 October 2019
  • SCI Capital Relief Trades Awards 2019

    Arranger of the Year: Credit Suisse

    Credit Suisse is SCI’s Arranger of the Year in recognition of the variety of structures it...

    News    25 October 2019
  • CRR amendments for NPEs recommended

    Sector developments and company hires

    CRR amendment opinion published The EBA has published an opinion on the regulatory treatment of se...

    Market moves    24 October 2019
  • SCI Capital Relief Trades Awards 2019

    Issuer of the Year: Santander

    Santander was one of the banks that actively participated in efforts to extend the STS designation t...

    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
  • Firm files Chapter 11

    Company hires and sector developments

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

    Market moves    22 October 2019