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.

• Maltese benefits

  Jurisdiction especially suited to innovative transport ABS

  Malta provides a legal and tax framework that provides the same benefits for the establishment of SP...

  News Analysis    10 September 2019

• CLO firm bulks up

  Company hires and sector developments

  CLO firm bulks up Adrienne Dale has joined MidOcean Credit Partners a portfolio manager for its CL...

  Market moves    9 September 2019

• SCI Start the Week - 9 September

  A review of securitisation activity over the past seven days

  Transaction of the week The EIF has launched two new funding initiatives to support SMEs in Europe,...

  News    9 September 2019

• ILS deputy head hired

  Company hires and sector developments

  Blockchain standardisation steps taken The standardisation of blockchain technology, which the Int...

  Market moves    6 September 2019

• SME initiatives inked

  EIF launches further guarantee programmes for businesses across Europe

  The EIF has launched two new funding initiatives to support SMEs in Europe, including a first-of-its...

  News    6 September 2019

• Ceo appointed

  Sector developments and company hires

  Analytics head nabbed Merion Square Capital has hired Jeff Fraser as head of analytics, based at t...

  Market moves    5 September 2019

• STS success?

  Market warms to STS, but threats hover on the horizon

  While STS lead to a dampening effect on ABS issuance at the start of the year, it is starting to bri...

  News    5 September 2019

• Going concern?

  Synthetics could help address UTP burden

  Synthetic securitisation is being put forward as one way of proactively addressing the unlikely-to-p...

  News Analysis    5 September 2019

• Structured credit vets nabbed

  Sector developments and company hires

  EBA makes STS digital move The EBA has announced that it has added the STS Regulation to its onlin...

  Market moves    4 September 2019

• Tesco portfolio disposal sealed

  Company developments and sector hires

  Auto deal debut Oodle Financial Services is marketing an inaugural static cash securitisation of a...

  Market moves    3 September 2019

• RAIT sale

  Company developments and sector hires

  Aussie bank secures warehouse line Yellow Brick Road (YBR), an Australian non-bank lender, has rec...

  Market moves    2 September 2019

• SCI Start the Week - 2 September

  A review of securitisation activity over the past seven days

  Market commentary A new Fitch study shows that there is a wide range in trustee reported market val...

  News    2 September 2019

• Strong performance

  Refi PSL ABS upgraded

  Moody's has lowered its expected default rate for typical unseasoned refinancing private stu...

  News    30 August 2019

• Regulatory boost

  Italian SRT issuance picks up

  Italian capital relief trades are experiencing a strong pick-up in issuance this year as regulatory...

  News Analysis    30 August 2019

• Portuguese ABS framework updated

  Sector developments and company hires

  Portuguese ABS framework updated A new regulation has been introduced in Portugal providing for th...

  Market moves    30 August 2019

• NPL relief

  ECB extends provisioning calendar

  The ECB is set to align its supervisory expectations regarding the provisioning of new non-performin...

  News Analysis    30 August 2019

• Esoteric opportunities

  Structured solutions to address corporate risk transfer needs

  The newly-formed CAC Specialty (SCI 21 August) is seeking to capitalise on the convergence of the in...

  News    30 August 2019

• Structured credit head steps down

  Company hires and sector developments

  BUMF 6 claim filed Business Mortgage Finance 6 has issued a claim against Roundstone Technologies...

  Market moves    29 August 2019

• Back to work

  UK deal flow restarts ahead of expected busy months ahead

  Oak No. 3 has become the first ‘post-summer’ UK ABS/MBS deal to price. It is exp...

  News Analysis    29 August 2019

• Risk transfer round-up - 28 August

  CRT sector developments and deal news

  Credit Suisse has called two transactions from its Magnolia Finance V programme. The transactions we...

  News    28 August 2019

• Ceo replaced

  Sector developments and company hires

  New ceo appointed Oaktree Specialty Lending has announced that ceo and cio Edgar Lee has resigned...

  Market moves    27 August 2019