Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London
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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.


  • Job swaps round-up - 17 November

    EMEA CSC has hired Jonathan Hanly as md to its Ireland office, Hinnerk Koch as md to its Luxembour...

    Job Swaps    17 November 2017
  • Risk transfer round-up - 17 November

    RBS hit the market this week with its first DBRS-rated risk transfer transaction, dubbed Nightingale...

    News    17 November 2017
  • Call for increased standardisation

    Ahead of the EBA's public hearing tomorrow on its significant risk transfer (SRT) discussion paper (...

    Talking Point    16 November 2017
  • Mortgage ILS breaks new ground

    Arch Capital Group recently closed its first public rated mortgage ILS (SCI 18 October). Dubbed Bell...

    News Analysis    14 November 2017
  • SCI Start the Week - 13 November

    A look at the major activity in structured finance over the past seven days.

    Pipeline There were even more additions to the pipeline last week than there had been in the week b...

    News    13 November 2017
  • Job swaps round-up - 10 November

    EMEA Ares Management has hired Rory McHugh as md. McHugh was previously md, head of alternative fi...

    Job Swaps    10 November 2017
  • NPL equity acquired

    Hedge fund Elliott Management has acquired an equity piece in Attica Bank's non-performing loan secu...

    News Analysis    10 November 2017
  • EMIR inaction could be 'grave'

    The risks from industry inaction regarding EMIR are "grave" and could have "serious negative consequ...

    News    9 November 2017
  • Aqua preps debut ABS

    Aqua Finance is marketing its first public term securitisation. US$194m Aqua Finance Trust 2017-A (s...

    News    7 November 2017
  • Agricultural equipment ABS debuts

    DLL Finance, a Rabobank subsidiary, is in the market with an inaugural equipment ABS. Dubbed DLL Sec...

    News    7 November 2017
  • Airline bankruptcy exposure gauged

    A number of aircraft ABS have been impacted by the bankruptcy of several large carriers in Europe, w...

    News    6 November 2017
  • SCI Start the Week - 6 November

    A look at the major activity in structured finance over the past seven days.

    Pipeline It was full steam ahead once more for the pipeline. There were 13 ABS, an ILS, three RMBS,...

    News    6 November 2017
  • Job swaps round-up - 3 November

    EMEA The Carlyle Group is set to reorganise its executive leadership, effective from 1 January 201...

    Job Swaps    3 November 2017
  • Risk transfer round-up - 3 November

    Two US public pension funds in Arizona and Pennsylvania are rumoured to have completed a capital rel...

    News    3 November 2017
  • Pre-emptive lawsuits envisaged

    The threat of significant losses has sparked concern that the US subprime auto ABS sector could see...

    News Analysis    3 November 2017
  • Balance sheet optimisation continues

    Rabobank has transferred part of the risk on a €3bn commercial credit portfolio to pension...

    News Analysis    3 November 2017
  • ISPV approach published

    The UK PRA has published its final approach and expectations in relation to the authorisation and su...

    News    2 November 2017
  • Using insurance to lay off risk

    Alan Ball and Fiona Walden, senior underwriters leading the structured risk solutions team at Libert...

    The Structured Credit Interview    2 November 2017
  • Unique SLABS relaunched with revisions

    The first securitisation of income-contingent repayment (ICR) student loans originated by the UK gov...

    News    1 November 2017
  • Secured warehouse use broadens

    Be-Spoke Loan Funding (SCI 3 October), a direct lending warehouse facility set up as a cashflow secu...

    News Analysis    1 November 2017
  • Protection 'gap' targeted

    Plans to establish Singapore as an Asian insurance-linked securities hub were unveiled today at the...

    News    1 November 2017