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 - 13 May

  A review of securitisation activity over the past seven days

  Transaction of the week Last week saw an unusual Irish CMBS hit the European pipeline, from debut...

  News    13 May 2019

• Irish debut CMBS prepped

  Flurry of European ABS hit pipeline

  A rush of European securitisations have hit the pipeline, across asset classes and jurisdictions. Th...

  News    10 May 2019

• Energy expert nabbed

  Company hires and sector developments

  Energy expert nabbed Energy Estate has hired Christian Krebs as one of the leaders in&...

  Market moves    8 May 2019

• NPL securitisation inked

  Portuguese issuer returns to market

  Caixa Montepio Geral has returned to the market with its second NPL securitisation, dubbed Gaia Fina...

  News    8 May 2019

• STS 'not enough' for European ABS revival

  Securitisation 'needs to be used more' as funding tool

  At the start of last year, BNP Paribas Asset Management hired Michel Fryszman as its new he...

  News Analysis    3 May 2019

• NPL acquisition completed

  Hoist Finance purchases Getback portfolio

  Hoist Finance has acquired a PLN400m non-performing loan portfolio from Polish servicer Getback. Ove...

  News    3 May 2019

• Challenges persist

  Structuring issues put shipping SRTs on hold

  Capital relief trades referencing shipping loans have long been discussed and planned by a small num...

  News Analysis    3 May 2019

• Rating agency appoints new SF head

  Company hires and sector developments

  Bank bulks up Macquarie has appointed Carolyn Porretta md, structured finance and real estate, bas...

  Market moves    3 May 2019

• Servicing consolidation

  Subprime auto portfolio transfers gain traction

  US subprime auto loan portfolio sales activity is expected to increase as further lenders withdraw f...

  News Analysis    3 May 2019

• Line-up finalised

  NPL event includes UTP workshop

  The line-up for SCI’s 2nd Annual NPL Securitisation Seminar on 13 May has been finalised....

  News    3 May 2019

• Risk transfer round-up - 3 May

  CRT sector developments and deal news

  Santander is rumoured to be readying an SME transaction from its Magdalena programme for 2Q19.The tr...

  News    3 May 2019

• First SOFR-indexed MBS tranche inked

  Sector developments and company hires

  Claims predictability to improve? The Florida legislature last month passed a bill to reform the re...

  Market moves    2 May 2019

• SFR issuer prepays class F notes

  Sector developments and company hires

  EMEA Alantra has reinforced its portfolio advisory capabilities with the addition of six senior p...

  Market moves    30 April 2019

• Risk transfer round-up - 26 April

  CRT sector developments and deal news

  The second quarter of this year is expected to be more active in terms of capital relief trade issua...

  News    26 April 2019

• Rating agency names managing director

  Sector developments and company hires

  EMEA Scope has named Guillaume Jolivet as md. He joins the firm’s management board, along...

  Market moves    25 April 2019

• Landmark involvement

  Michael Bennett, head of derivatives and structured finance for the World Bank Treasury, answers SCI...

  Q: How and when did the World Bank Treasury become involved in the risk transfer market? A: We beca...

  The Structured Credit Interview    25 April 2019

• Non-traditional assets

  ABCP boosted by demand, diversification

  US ABCP outstanding is expected to grow moderately this year, as prime institutional money-market fu...

  News Analysis    25 April 2019

• Lender charged for overstating returns

  Sector developments and company hires

  CRT analytics dv01 has launched a credit risk transfer market surveillance offering, which adds U...

  Market moves    23 April 2019

• CLO manager denied incentive fee

  Sector developments and company hires

  Incentive fee ruling The High Court in London has ruled that Barings (UK), as collateral manager, w...

  Market moves    18 April 2019

• Risk transfer round-up - 18 April

  CRT sector developments and deal news

  Credit Suisse is believed to be readying a corporate capital relief trade from its Elvetia programme...

  News    18 April 2019

• BMF administration order filed

  Sector developments and company hires

  BMF 6 tender An application for an administration order in respect of Business Mortgage Finance 6 w...

  Market moves    16 April 2019