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.

• Protection 'gap' targeted

  Plans to establish Singapore as an Asian insurance-linked securities hub were unveiled today at the...

  News    1 November 2017

• Loss coverage ratios scrutinised

  Loss coverage ratios on a number of World Omni Auto Trust class A ABS bonds should have been adequat...

  News    31 October 2017

• First Aussie personal loan ABS prepped

  The first Australian personal loan ABS is marketing. The A$542.5m Latitude Australia Personal Loans...

  News    31 October 2017

• Euro secondary strengthens

  Levels continue to strengthen across the European securitisation secondary market. October has bee...

  SCIWire    31 October 2017

• Legal issues weigh on Earnest acquisition

  Navient's recent acquisition of Earnest is seen as a bold move, given its ongoing legal challenges (...

  News Analysis    30 October 2017

• SCI Start the Week - 30 October

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

  Pipeline There were notably fewer pipeline additions last week. The final count consisted of an AB...

  News    30 October 2017

• STS rules welcomed

  The European Parliament last week approved new common rules for securitisation in the EU, while also...

  News Analysis    30 October 2017

• Jet ABS 'postponed'

  Global Jet Capital's debut securitisation, Business Jet Securities 2017-1, has been postponed, accor...

  News    27 October 2017

• Greek shipping ABS boosts liquidity

  Alpha Bank has successfully completed a US$250m true sale securitisation via Citi, its second such t...

  News    27 October 2017

• Timeshare ABS uncapped

  LV Tower 52 has launched a US$157m timeshare ABS, marking the firm's first transaction that Fitch ha...

  News    26 October 2017

• Debut Veros deal markets

  Veros Credit has prepped an inaugural rated US$165.28m subprime auto ABS. The transaction, Veros Aut...

  News    24 October 2017

• Libor replacement a "steep challenge"

  A transition to a replacement reference rate away from Libor by 2021 will be a "steep challenge" wit...

  News    24 October 2017

• ABS rating effect explored

  Rating changes can have a significant impact on an ABS bond's price and value. While investors are l...

  News    24 October 2017

• ESNs 'not needed yet'

  European Structured Notes (ESNs) have been on the radar for some time and a recent Moody's analysis...

  News Analysis    23 October 2017

• SCI Start the Week - 23 October

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

  Pipeline Additions to the pipeline last week were once again heavily skewed towards ABS. There were...

  News    23 October 2017

• Job swaps round-up - 20 October

  Australia Baker McKenzie has recruited Duncan McGrath as a partner in its corporate group in Sydne...

  Job Swaps    20 October 2017

• MPS loan appraisal pending

  Cerved Information Solutions, one of the largest Italian servicers, has been selected by Atlante II...

  News Analysis    20 October 2017

• Risk transfer round-up - 20 October

  Rumours abound of new capital relief trades being prepped. One source suggests that ING is readying...

  News    20 October 2017

• Swap downgrades 'justified, necessary'

  Fitch downgraded Deutsche Bank's ratings last month, stating that the bank is no longer a suitable c...

  News Analysis    20 October 2017

• Montepio NPL deal marketing

  A €142.5m Portuguese non-performing loan securitisation has hit the market. Dubbed Hefesto...

  News    19 October 2017

• Mortgage ILS landmark imminent

  United Guaranty is in the market with Bellemeade Re 2017-1 (see SCI's deal pipeline). The mortgage i...

  News    18 October 2017