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.

• Symbiotic relationship?

  Marketplace lending enters the mainstream

  The online lending sector has become mainstream, forcing marketplace platforms to better differentia...

  News Analysis    27 March 2019

• Granite refinancing

  Sector developments and company hires

  Europe Muzinich & Co has hired Laurence Kubli as structured credit specialist with immedia...

  Market moves    25 March 2019

• Purchase option to be exercised

  Sector developments and company hires

  EMEA Capzanine has appointed Renaud Tourmente as head of business development, effective from 6 M...

  Market moves    22 March 2019

• Goals aligned

  Insurers target dual-tranche CRTs

  Insurance firms are targeting mezzanine tranches in dual-tranche capital relief trades as banks warm...

  News Analysis    22 March 2019

• GACS successor

  New Italian NPL scheme launched

  The Italian government has introduced a successor to the GACS scheme. The replacement guarantee feat...

  News    22 March 2019

• Control pursued

  Indian distressed debt unit established

  Deutsche Bank is setting up an asset reconstruction company (ARC) in India to buy and sell restructu...

  News    21 March 2019

• Majority stake acquired

  Sector developments and company hires

  Balance sheet normalisation The US Fed has confirmed it intends to continue to allow its holdings o...

  Market moves    21 March 2019

• ERM debut

  Seniors Money preps its return

  The first publicly rated securitisation of Irish and Spanish equity release mortgages (ERMs) has hit...

  News    20 March 2019

• Relative value

  JFSA risk retention rules shift focus

  The Japanese Financial Services Agency (JFSA) has published its final rules on regulatory capital re...

  News    20 March 2019

• Private credit firm launched

  Sector developments and company hires

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  Market moves    18 March 2019

• Latest podcast now available

  CRT themes and a Dutch RMBS first discussed

  In this month's podcast, we explore some interesting themes within the CRT market: namely,&a...

  News    15 March 2019

• GACS alternative?

  Investor group completes NPL securitisation

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  News    15 March 2019

• Benchmark Sonia deal prepped

  Unique UK RMBS transaction adds momentum to IBOR transition

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  News    15 March 2019

• Inaugural online auto ABS prepped

  Sector developments and company hires

  Online auto ABS debuts Carvana, an online platform for buying used cars launched in 2012 by DriveT...

  Market moves    15 March 2019

• Servicing strength

  Debut Spanish NPL securitisations anticipated

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  News Analysis    15 March 2019

• 'Steady stream' of STS deals needed

  Market reacts positively to inaugural STS ABS

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  News    14 March 2019

• Mixed performance

  Semi-annual NPL securitisation update debuts

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  News    14 March 2019

• Formative stages

  Greek NPL momentum continues

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  News    13 March 2019

• Auto ABS looks set to receive first STS verification

  Sector developments and company hires

  Auto ABS looks set to receive first STS verification The first European ABS that looks se...

  Market moves    13 March 2019

• UMBS trades to be accepted

  Sector developments and company hires

  UMBS trades to be accepted In support of the Single Security Initiative, Fannie Mae will begin acc...

  Market moves    12 March 2019

• Bright spot

  European ABS market update

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  Market Reports    12 March 2019