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.

• Consumer boost

  Santander completes innovative SRTs

  Santander has completed two synthetic securitisations of consumer loans. The transactions are the ba...

  News    16 January 2020

• Aircraft equity investment disclosed

  Sector developments and company hires

  Aircraft equity investment Floreat has disclosed that it invested US$25m in the equity certificat...

  Market moves    15 January 2020

• Hong Kong ABS recommendations released

  Sector developments and company hires

  Alternative risk transfer Arthur J Gallagher has increased its interest in Capsicum Reinsurance B...

  Market moves    14 January 2020

• Under pressure

  US student loan ABS holding firm so far

  US student loan ABS faces a difficult year from both technical and political pressures. However, the...

  News Analysis    14 January 2020

• SCI Start the Week - 13 January

  A review of securitisation activity over the past seven days

  Transaction of the week Goldman Sachs is marketing River Green Finance 2020, which is expected to b...

  News    13 January 2020

• Landmark quake bond closed

  Sector developments and company hires

  DLT legal analysis published ISDA, Clifford Chance, R3 and the Singapore Academy of Law have publ...

  Market moves    13 January 2020

• Landmark CLN finalised

  Santander completes undrawn RCF trade

  Santander has completed a €147m CLN that is backed entirely by undrawn corporate and financ...

  News    10 January 2020

• Auto debut

  Further credit union issuance anticipated

  More credit unions are expected to tap the US securitisation market, following the closing in Novemb...

  News    10 January 2020

• CLO losses expected after Constellis default

  Sector developments and company hires

  Constellis losses expected Moody’s warns that, at current prices, Constellis Holdings&...

  Market moves    10 January 2020

• Leasing guarantee

  EFL completes capital relief trade

  The EIF and Europejski Fundusz Leasingowy (EFL) have completed a synthetic securitisation of an unus...

  News    9 January 2020

• Real assets partnership inked

  Sector developments and company hires

  BWIC platform CLO auction technology platform KopenTech has launched its online BWIC service, which...

  Market moves    8 January 2020

• THEAT 2007-1 and 2007-2 set to repay

  Sector developments and company hires

  Asia Pacific ISDA has appointed Su Yen Chia as its new head of Asia-Pacific public policy. Chia p...

  Market moves    7 January 2020

• CQS SRT finalised

  Unusual reference pool securitised

  An unusual significant risk transfer transaction referencing a €1.78bn static portfolio of...

  News    24 December 2019

• SCI Start the Week - 23 December

  A review of securitisation activity over the past seven days

  Transaction of the week A pair of Italian non-performing loan securitisations – dubbed Fu...

  News    23 December 2019

• MNHD plans programmatic issuance

  Sector developments and company hires

  Egyptian securitisation debuts Egyptian real estate developer Madinet Nasr Housing and Development...

  Market moves    23 December 2019

• Nordic SRT inked

  Nordea returns with capital relief trade

  Nordea has priced a €5.1bn synthetic securitisation of Nordic corporate and SME loans. Dubb...

  News    20 December 2019

• SCI's latest podcast is now live!

  The editorial team discuss key issues in securitisation today...

  In this episode of the SCI podcast, Mark Pelham and Corinne Smith discuss our new research report on...

  News    19 December 2019

• Risk participation programme agreed

  Sector developments and company hires

  CLO vulnerabilities eyed The Financial Stability Board has published a report assessing the financi...

  Market moves    19 December 2019

• GSE price-fixing lawsuit settled

  Sector developments and company hires

  CLO manager transfer Hunt Investment Management has assigned collateral manager duties for the Hunt...

  Market moves    18 December 2019

• UK auto SRT finalised

  Santander completes retained first-loss deal

  Santander has completed a synthetic securitisation of UK auto loans. Dubbed Motor Securities 2018-1,...

  News    18 December 2019

• NPL ABS pair inked

  Guber, UBI Banca hit the market

  A pair of Italian non-performing loan securitisations – dubbed Futura 2019 and Iseo SPV &a...

  News    17 December 2019