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.


  • Libor transition provisions eyed

    Despite the UK FCA's recent announcement that it plans to phase Libor out by 2021 (SCI 31 July), the...

    News Analysis    25 August 2017
  • Ukrainian NPL sales gain traction

    DebtX is set to facilitate the largest Ukrainian NPL portfolio sale next month, signalling a growing...

    News Analysis    25 August 2017
  • NPL auction model highlighted

    Online platform Debitos welcomes the European Commission's public consultation on the development of...

    News Analysis    23 August 2017
  • Bond Connect debuts auto ABS

    Ford Automotive Finance (China) (FAFC) has launched the first securitisation utilising Bond Connect,...

    News    23 August 2017
  • IBR driving collateral convergence

    FFELP student loan ABS collateral performance has converged in recent years due to the growing use o...

    News    22 August 2017
  • SCI Start the Week - 21 August

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

    Pipeline Only a handful of transactions remained in the pipeline at the end of last week. The major...

    News    21 August 2017
  • Risk transfer framework outlined

    Outlines of the main elements of the EBA's risk transfer discussion paper - due to be rele...

    News    18 August 2017
  • Air Berlin insolvency affects aircraft ABS

    Air Berlin filed for insolvency yesterday. While intervention from the German state should keep the...

    News    16 August 2017
  • Exeter breach an 'atypical' event

    EART 2015-2 senior bondholders received no principal payment this month, after the auto ABS deal's c...

    News    16 August 2017
  • Chinese NPL collections surveyed

    Collections for most Chinese non-performing loan securitisations have outpaced originators' initial...

    News    15 August 2017
  • SCI Start the Week - 14 August

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

    Pipeline Additions to the pipeline last week were balanced between ABS and CMBS. There were five of...

    News    14 August 2017
  • Refi SLABS seeing product, borrower expansion

    Refinanced student loan ABS (SLABS) has grown to become a defined sector within student lending, mak...

    News Analysis    10 August 2017
  • Best execution requirements assessed

    MiFID 2, due to be implemented across the EU by 3 January 2018, will have a far-reaching impact on t...

    News Analysis    9 August 2017
  • Registered, Rule 144A issuance compared

    The US SEC's division of economic and risk analysis (DERA) has published a report assessing how tren...

    News    9 August 2017
  • Subprime auto subs hit record tights

    US subprime auto ABS are pricing at the tightest spreads on record in the face of strong investor de...

    News    8 August 2017
  • Cat bond issued in blockchain first

    Solidum Re has launched what is believed to be the first-ever catastrophe bond to have been digitise...

    News    8 August 2017
  • Innovative ILS coverage offered

    The IBRD has priced a series of catastrophe bonds that will provide the Mexican Fund for Natural Dis...

    News    7 August 2017
  • SCI Start the Week - 7 August

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

    Pipeline ABS deals accounted for more than half of last week's pipeline additions. There were seven...

    News    7 August 2017
  • Peripheral ABS playing catch-up

    Structured finance issuance in the European core has held up well over the summer, with spreads cont...

    News Analysis    4 August 2017
  • Risk transfer round-up - 4 August

    Capital relief trade players are expecting a quiet August, before the flurry of activity that will d...

    News    4 August 2017
  • Inaugural aviation ABS readied

    Sky Aviation Leasing International is in the market with an inaugural securitisation. Dubbed S-JETS...

    News    4 August 2017