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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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 -
Broker charged over mispricing
Sector developments and company hires
Broker charged over mispricing The US SEC has charged New York-based broker-dealer AOC Securities...
Market moves 23 August 2019 -
Debut consumer securitisation prepped
Australian non-bank markets inaugural ABS
Wingate Consumer Finance is marketing an inaugural term securitisation of personal loans extended to...
News 23 August 2019 -
Counterintuitive results
EBA consultation incentivises unfunded SRT format
The EBA’s consultation on the determination of the weighted average maturity of a securiti...
News Analysis 23 August 2019 -
Warehouse line closed
Company hires and sector developments
CRE appointments Arbor Realty Trust has appointed Danny van der Reis as evp, structured asset mana...
Market moves 22 August 2019 -
Private market thriving
Specialty finance firms find multiple benefits in private deals
Private securitisations are thriving, particularly among specialty finance companies, as a flexible...
News Analysis 22 August 2019 -
Volcker rule amended
Company hires and sector developments
Aviation firm appoints treasurer Wings Capital Partners has hired Jakob Gallagher as vp, treasurer...
Market moves 21 August 2019 -
CLO ESG impact assessed
Sector developments and company hires
ESG impact assessed The credit impact of environmental, social and governance (ESG) investment cri...
Market moves 19 August 2019 -
SCI Start the Week - 19 August
A review of securitisation activity over the past seven days
Transaction of the week CFO backed by PE portfolio (SCI 13 August) Nassau Alternative Investments...
News 19 August 2019 -
Whole biz downgrade announced
Company developments and company hires
Acquisitions Crescent Capital BDC is set to acquire Alcentra Capital Corp, a middle-market BDC. Th...
Market moves 16 August 2019 -
Consent challenges
Transactions losing value without Libor fallback language
Investors are working with an asset registry and communication platform to obtain noteholde...
News 16 August 2019 -
Brexit impact gauged
UK ABS expected to withstand no-deal
A no-deal Brexit scenario isn’t expected to significantly affect the economics of UK ABS t...
News Analysis 16 August 2019 -
Risk transfer round-up - 16 August
CRT sector developments and deal news
UBI Banca is rumoured to be prepping an SME and corporate SRT for 3Q19. The alleged transaction is r...
News 16 August 2019 -
Syncora Guarantee acquired
Sector developments and company hires
Syncora sale GoldenTree Asset Management entity Star Insurance Holdings is set to acquire Syncora H...
Market moves 15 August 2019 -
NPL disposals inked
Sector developments and company hires
ABSF tender The Australian Office of Financial Management is inviting tender submissions for the p...
Market moves 14 August 2019 -
Tweaking tradition
Dutch securitisation evolving across established sectors
The Dutch securitisation market is seeing innovation and growth away from its traditional strong foc...
News Analysis 13 August 2019 -
STS mirage
"Still no level playing field" despite regulation
Despite the high bar that issuers must clear to achieve the STS designation on securitisations, the...
News Analysis 12 August 2019 -
SCI Start the Week - 12 August
A review of securitisation activity over the past seven days
SCI CRT awards Don't miss out on your chance to win: the submissions deadline for the inaugural SCI...
News 12 August 2019 -
Venture ABS prepped
Horizon Technology Finance hits the market
Horizon Technology Finance is marketing an ABS backed by secured liens on non-investment grade perfo...
News 9 August 2019 -
AM acquisition
Sector developments and company hires
Asset management acquisition Assured Guaranty US Holdings is set to acquire all of the outstanding...
Market moves 9 August 2019 -
Senior mezz eyed
CRT issuers target asset managers
Banks are targeting asset managers for the senior mezzanine tranches of dual-tranche capital relief...
News Analysis 9 August 2019