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.

• Synthetic slew

  CRT issuances hit before year-end

  A slew of synthetic securitisations have hit the market before year-end. The risk transfer issuances...

  News    21 December 2018

• Inaugural post-crisis CLO prepped

  Sector developments and company hires

  CLO manager comeback AIG is marketing its first BSL CLO since the financial crisis, totalling US$5...

  Market moves    21 December 2018

• Disclosure draft not endorsed

  EC refuses to endorse draft technical standards

  The European Commission has stated that it only intends to endorse the draft technical stan...

  News    20 December 2018

• Consumer SRT completed

  Santander opts for true sale format

  Santander last month priced Kimi 7, a €665.3m true sale significant risk transfer transacti...

  News Analysis    19 December 2018

• Japanese dependence

  European ABS market update

  European ABS markets have effectively closed for the year. Deals in the pipeline are now expected to...

  Market Reports    19 December 2018

• ILS ventures launched

  Sector developments and company hires

  ILS Rewire Holdings and Vida Capital have announced the formation of Merion Square Capital, a join...

  Market moves    19 December 2018

• Programmatic issuance

  UBI Banca completes second CRT

  UBI Banca has completed its second-ever capital relief trade, paving the way for more programmatic i...

  News    19 December 2018

• New frontiers

  SF group uses innovative methods to provide private debt financing

  REYL Group recently established a new structured finance department as part of the Corporate Advisor...

  Provider Profile    18 December 2018

• Deal delay?

  European ABS market update

  A trader reports that nothing has been heard of the Alhambra SME Funding 2018-1 deal, which &ldq...

  Market Reports    18 December 2018

• Cerberus explores RMBS options

  Sector developments and company hires

  Granite alternatives Cerberus European Residential Holdings is exploring strategic alternatives wi...

  Market moves    17 December 2018

• Wetherby 2 completed

  SONIA-linked synthetic securitisation debuts

  Lloyds has completed a £142.5m 7.25-year financial guarantee referencing a £1.5b...

  News    17 December 2018

• Landmark transaction launched

  UK RMBS is first securitisation tied to SONIA rate

  The first securitisation with liabilities tied to the Sterling Overnight Index Average (SONIA) rate...

  News    17 December 2018

• SCI Start the Week - 17 December

  A review of securitisation activity over the past seven days

  Market commentary European CMBS BWIC activity swelled after the Taurus 2018-3 DEU deal priced last...

  News    17 December 2018

• ABSPP plans published

  Sector developments and company hires

  APP reinvestment set The ECB has outlined the technical parameters for the reinvestment of the pri...

  Market moves    14 December 2018

• JV trend continues

  Landmark NPL transactions agreed

  Banco BPM announced this week a non-performing loan securitisation with Elliott International and Cr...

  News Analysis    14 December 2018

• STS guidelines published

  Sector developments and company hires

  P2P head hired Dynamic Credit has hired Giles Andrews as chairman of its supervisory board. The bo...

  Market moves    13 December 2018

• Concerns ignited

  Wildfire peril pricing questioned

  ILS market participants are re-evaluating whether the pricing of wildfire risk in catastrophe bonds...

  News Analysis    13 December 2018

• Libor consultation launched

  Sector developments and company hires

  ILS Peak Reinsurance Company has launched Asia’s first sidecar transaction via a new Ber...

  Market moves    11 December 2018

• Risks remain

  Termination risks persist for SF transactions in no-deal scenario

  Contingency plans being implemented by financial institutions will help to avoid many derivatives ri...

  News    10 December 2018

• Corporate finance partner hired

  Sector developments and company hires

  CDO manager transfer Dock Street Capital Management has replaced Deerfield Capital Management as c...

  Market moves    7 December 2018

• Bid scarcity

  European ABS market update

  A major UK bank is focusing efforts of European NPLs in the coming weeks, as spreads continue to wid...

  Market Reports    7 December 2018