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.

• Co-founder to depart

  Company hires and sector developments

  Co-founder moves on BlueMountain’s co-founder and co-president Stephen Siderow is set to...

  Market moves    10 October 2019

• Credit system "positive" for China SF deals

  Sector developments and company hires

  Credit system a positive for China SF deals China’s plan to establish a comprehensive, n...

  Market moves    9 October 2019

• Opening up

  Platform hopes to securitise global banks' trade finance assets

  While trade finance assets are of growing interest to investors, due to the attractive risk-return p...

  News Analysis    9 October 2019

• Bank leaves CDS committee

  Sector developments and company hires

  Bank leaves CDS committee Societe Generale has decided to leave the Credit Determinations Committe...

  Market moves    7 October 2019

• SCI Start the Week – 7 October

  A review of securitisation activity over the past seven days

  Transaction of the week RMF is marketing its first private RMBS backed by jumbo proprietary reverse...

  News    7 October 2019

• Rating challenges

  Limited appetite for rated senior mezz

  Issuers have typically refrained from seeking ratings on the senior mezzanine tranches of dual-tranc...

  News Analysis    7 October 2019

• Risk transfer round-up - 4 October

  Capital relief trade sector developments and deal news

  HSBC is rumoured to be readying a corporate capital relief trade for 4Q19. According to SCI data, th...

  News    4 October 2019

• Spanish SRT finalised

  Santander completes full-stack auto ABS

  Santander has priced a €555.5m true sale significant risk transfer transaction dubbed Santa...

  News    4 October 2019

• ILS acquisition announced

  Company hires and sector developments

  Acquisition announced Artex Risk Solutions has announced that it has reached agreement to acquire...

  Market moves    3 October 2019

• Nascent stages

  CRT mezz investor base needs time to develop

  The pace of growth of the risk transfer market is likely to be tied to the development of the synthe...

  News    3 October 2019

• Issuance wave

  Opel and Sabadell settle first full-stack SRTs

  Opel and Sabadell have settled their first full-stack significant risk transfer transactions. The tr...

  News Analysis    2 October 2019

• Autumn sales

  Italian NPL, UTP disposals continue apace

  Illimity Bank and a Cerberus Capital Management affiliate have acquired a second unlikely-to-pay loa...

  News    2 October 2019

• CLO firm co-founder to retire

  Sector developments and company hires

  30-year CIRT debuts Fannie Mae has completed its sixth Credit Insurance Risk Transfer transaction...

  Market moves    2 October 2019

• ABS key to energy upgrade initiative?

  Securitisation could solve efficiency projects challenge

  The European Commission reports that 75% of Europe’s building stock is not energy efficien...

  News Analysis    2 October 2019

• B-piece service bulks out

  Sector developments and company hires

  B-piece service bulks out Greystone, has added Paul Smyth, Cary Williams, and&am...

  Market moves    30 September 2019

• SCI Start the Week - 30 September

  A review of securitisation activity over the past seven days

  Transaction of the week FirstKey Mortgage is marketing the first securitisation backed by manufactu...

  News    30 September 2019

• Full-stack SRT boost

  Opel, Sabadell achieve funding and capital relief

  Banco Sabadell and Opel Bank last week priced respectively full stack consumer and auto ABS deals &a...

  News Analysis    27 September 2019

• Polish debut

  STS ABS gains EIB support

  PKO Leasing has closed Polish Lease Prime 1, the largest-ever Polish securitisation. The PLN2.5bn re...

  News    26 September 2019

• Aussie auto ABS debut prepped

  Sector developments and company hires

  Aussie auto debut prepped The first public term securitisation backed by collateral originated by...

  Market moves    26 September 2019

• STS synthetics framework unveiled

  EBA publishes landmark consultation

  The EBA has published its long-awaited discussion paper on its proposals for an STS framework for sy...

  News Analysis    25 September 2019

• US CLO firm leadership shake-up

  Sector developments and company hires

  CLO firm makes md appointment MidOcean Partners has hired Natalya Michaels as md, focusing on mark...

  Market moves    25 September 2019