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.

• Bright spot

  European ABS market update

  De Lage Landen’s newly mandated UK equipment lease ABS represents a bright spot in an othe...

  Market Reports    12 March 2019

• R-PACE rulemaking proposals outlined

  Sector developments and company hires

  Credit line secured Foundation Home Loans has entered into a new £350m warehouse credit...

  Market moves    11 March 2019

• Servicing boost

  Intrum augments Greek presence

  Intrum is planning a purchase of a Greek debt servicing platform, which will act as a springboard fo...

  News    8 March 2019

• Merger opposed

  Company hires and sector developments

  Astra case development Judge Jennifer Frisch of the Minnesota District Court, Second Judicial Dist...

  Market moves    8 March 2019

• Isolation issues

  DLT legal, operational challenges highlighted

  A number of legal and operational issues still need to be resolved before blockchain securitisations...

  News Analysis    8 March 2019

• Stronger tone

  European ABS spreads tighten but supply muted

  There is a stronger tone in the European ABS market overall and there has been spread tightening acr...

  Market Reports    8 March 2019

• CDS reforms proposed

  Company hires and sector developments

  Australia Mortgage House has hired Steven Mixter as head of securitisation and structured finance....

  Market moves    7 March 2019

• Creative approach

  Definition of CRT criteria evolving

  As the drivers for banks to pursue risk transfer transactions have broadened over the last few years...

  News Analysis    7 March 2019

• Deleveraging deal

  Bari SRT performance consistent with expectations

  Scope has determined that the performance of Banca Popolare di Bari’s last significant ris...

  News    6 March 2019

• CRE investor bulks out

  Company hires and sector developments

  CDX-linked ETF launched Tabula has launched a new ETF, dubbed Tabula European iTraxx Crossover...

  Market moves    5 March 2019

• Line-up finalised

  CRT event to include two workshops

  The line-up for SCI’s 3rd Annual Risk Transfer & Synthetics Seminar on 12 March ha...

  News    5 March 2019

• STS synthetics pending

  EBA to publish report by year-end

  The EBA is expected to publish a report on STS synthetic securitisations by year-end, which will the...

  News Analysis    1 March 2019

• Downward drift

  Low default trend continues

  Global corporate defaults fell in 2018 in advanced markets and were stable in emerging markets. The...

  News    1 March 2019

• New fund for CDS recruit

  Company hires and sector developments

  ABL acquisition Benefit Street Partners affiliate Business Development Corporation of America has a...

  Market moves    28 February 2019

• Debuting duo

  New ILS peril, domicile introduced

  GC Securities has placed a pair of innovative catastrophe bonds. Insurance Australia Group&rsquo...

  News    27 February 2019

• 'Long term solution needed'

  Day three from SFIG Vegas

  The last full day at SFIG Vegas was again abuzz with strong attendance and widespread optimism. On...

  News    27 February 2019

• Lights, camera, securitisation

  Film rights ABS remains attractive to studios

  The increasingly short length of time which films remain in movie theatres for these days may be fru...

  News Analysis    27 February 2019

• Structured finance 'well positioned' for downturn

  Second day at SFIG Vegas sees continued optimism

  Day two at SFIG Vegas saw a bountiful turnout of attendees, all looking to hear the latest on struct...

  News    26 February 2019

• CLO manager shake-up

  Company hires and sector developments

  Derivatives continuity The US CFTC and the Bank of England have issued a joint statement aimed at r...

  Market moves    26 February 2019

• Different strokes

  PACE prepayment volatility on the rise

  A new Morningstar Credit Ratings study reveals increased volatility and a generally accelerating tre...

  News    25 February 2019

• Model behaviour?

  Accuracy of ILS loss predictions hinges on evolving models

  Actual losses in the ILS market may be broadly in line with predictions, but there are sectors with...

  News Analysis    25 February 2019