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.

• Tough stance

  ESMA insists on private securitisation disclosures

  On 31 January, ESMA published a document that amends its draft regulatory technical standards (RTS)...

  News Analysis    22 February 2019

• CLO partnership launched

  Sector developments and company hires

  CDS trends discussed Mayer Brown has commented on trends in single-name CDS credit event determina...

  Market moves    21 February 2019

• Stand-out performer

  Systematic role for structured credit

  Funds focused on structured credit were, as a whole, stand-out performers in 2018. Of the 50 US stru...

  News Analysis    21 February 2019

• UK paper on the block

  European secondary ABS market update

  The European secondary ABS market has rallied since the beginning of the year. However, activity now...

  Market Reports    21 February 2019

• Law firm nabs SF vet

  Company hires and sector developments

  Europe Latham & Watkins has recruited Jeremiah Wagner as a partner in its finance departme...

  Market moves    20 February 2019

• Lacking clarity

  Libor transition still fraught with challenges

  With only two years to go until Libor is officially phased out in 2021, a number of questio...

  News Analysis    19 February 2019

• CLO firm restructure

  Company hires and sector developments

  Acis restructuring confirmed The US bankruptcy court in Dallas has confirmed Acis Capital Manageme...

  Market moves    19 February 2019

• Secondary focus

  Investors sitting on cash with new European issuance drought

  European structured finance traders continue to focus on the secondary market as they wait for regul...

  News    15 February 2019

• Risk transfer round-up - 15 February

  CRT sector developments and deal news

  The first quarter of this year is expected to see reduced capital relief trade issuance, due to ESMA...

  News    15 February 2019

• Oil opportunities

  Royalty-backed future flow ABS to develop

  Oil and gas companies are expected to tap the securitisation market with a new structure. The first...

  News    15 February 2019

• Italian auto firms fined

  Company hires and sector developments

  CLO hire Geoffrey Horton has joined Barclays as vp, CLO and loan strategist in London. He was prev...

  Market moves    15 February 2019

• Private placement

  Unusual tranched securitisation closed

  Fintex Capital has completed a structured finance transaction within its UK real estate lending busi...

  News    14 February 2019

• Bank expands credit derivatives business

  Company hires and sector developments

  Credit trading expansion HSBC has hired Asgar Rahemtulla as a director in credit trading. In his n...

  Market moves    14 February 2019

• Insurance firm expansion

  Sector hires and company developments

  Insurance firm expansion Nassau Re is expanding into additional specialty finance asset c...

  Market moves    12 February 2019

• Juno 2 completed

  BNL closes NPL securitisation

  Banca Nazionale del Lavoro has completed a €968m (GBV) non-performing loan securitisation o...

  News    11 February 2019

• RMAC claim

  Company hires and sector developments

  The RMAC Securities No. 1 Series 2006-NS1, 2006-NS2, 2006-NS3, 2006-NS4 and 2007-NS1 issuers have co...

  Market moves    8 February 2019

• Leviticus closed

  Banco BPM completes NPL securitisation

  Banco BPM has completed a €7.4bn (GBV) securitisation of secured and unsecured Italian non-...

  News    8 February 2019

• European middle market maturing

  US MM sector set to grow following BDC no-action letter

  The middle market securitisation sector is only set to grow in the US, with relaxed regulatory const...

  News Analysis    8 February 2019

• Junior demand

  Credit enhancement concerns raised

  Last year saw more single-B rated auto ABS paper issued in the US than in all previous years combine...

  News    8 February 2019

• Insurer boosts ILS capability

  Sector developments and company hires

  Acquisitions Eldridge Industries has increased its investment in Maranon, now holding a majority o...

  Market moves    6 February 2019

• BoE, ESMA seal no-deal plan

  Company hires and sector developments

  No-deal agreement sealed ESMA has agreed Memoranda of Understanding (MoUs) with the Bank of Englan...

  Market moves    5 February 2019