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.
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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