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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Cigarette slump?
Dispute revenue to offset declining MSA cashflows
US cigarette shipments have declined by an average of 3.2% per year since 2000 and are expected to d...
News 4 December 2019 -
Credit analysts poached
Sector developments and company hires
Credit analysts poached Cairn Capital has appointed José Ferrero and Vihren Jordanov as...
Market moves 4 December 2019 -
SCI Start the Week - 2 December
A review of securitisation activity over the past seven days
Transaction of the week Credit Agricole is marketing a securitisation of Dutch consumer loans origi...
News 2 December 2019 -
Full-stack debut
BDK completes first auto SRT
Bank Deutsches Kraftfahrzeuggewerbe (BDK) has debuted its first full-stack capital relief trade. Dub...
News 2 December 2019 -
Spanish SRT inked
Banco Cetelem completes full-stack auto ABS
Banco Cetelem has completed the first full-stack Spanish auto significant risk transfer transaction...
News 2 December 2019 -
Euro AM promotes three
Sector developments and company hires
AM promotes three Alcentra has promoted Daniel Fabian to president and coo. In this role, he will...
Market moves 2 December 2019 -
Dutch consumer ABS prepped
Transaction features several departures from previous deals
Credit Agricole is marketing a securitisation of Dutch consumer loans originated via subsidiaries of...
News 29 November 2019 -
Euro lending support announced
Sector developments and company hires
Euro lending support announced The EIF has committed €100m to online lending marketplace...
Market moves 28 November 2019 -
Italian market developments 'positive' for ABS
Sector developments and company hires
Italian market developments ‘positive’ for ABS Recent market developments in i...
Market moves 27 November 2019 -
Indian innovation
Diverse Indian ABS market sees growing, global investor base
The Indian securitisation market continues to grow and develop, with an increasingly global investor...
News Analysis 26 November 2019 -
Mortgage partnership announced
Sector hires and company developments
Euro credit team bulks up CIFC has hired Anders Samuelsen from Muzinich as it continues to build i...
Market moves 25 November 2019 -
SCI Start the week - 25 November
A review of securitisation activity over the past seven days
Transaction of the week Hercules tapped Alpha Bank is set to securitise a €12bn mixed p...
News 25 November 2019 -
FRTB consultation launched
Sector developments and company hires
APAC poll highlights key risks More than 80% of market participants polled by Moody’s at...
Market moves 22 November 2019 -
New ground
O&G securitisations open up new asset class to ABS investors
For the first time, working interests in oil and gas wellbores have been securitised, marking a new...
News Analysis 22 November 2019 -
Ceo retires
Sector developments and company hires
Capital markets head appointed 23 Capital has hired Sreesha Vaman as md, head of capital markets....
Market moves 21 November 2019 -
Ramping up
Standard Chartered boosts corporate issuance
Standard Chartered has completed a US$135m CLN that references a US$1.5bn portfolio of US and Europe...
News 21 November 2019 -
Legal firm beefs up
Sector developments and company hires
GSE capital rule eyed The FHFA plans to re-propose the entire regulation on capital requirements f...
Market moves 20 November 2019 -
Hercules tapped
Alpha Bank preps NPL securitisation
Alpha Bank is set to securitise a €12bn mixed portfolio of retail secured and unsecured loa...
News 20 November 2019 -
Italian AM expands to US
Sector developments and company hires
Azimut expands Italian asset manager Azimut has established a US-based operation named Azimut Alte...
Market moves 19 November 2019 -
Growth surge?
Russian structured bonds expected to grow
The Russian structured finance market has traditionally been dominated by a small number of asset cl...
News 19 November 2019 -
US CRT pick-up?
Volumes to remain restricted to large banks
The US capital relief trades market is witnessing a long-awaited uptick, with three deals reportedly...
News Analysis 18 November 2019