Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London


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.

  • Risk transfer round up - 29 September

    The focus of this past week has been the EBA's SRT discussion paper. Regulators and market participa...

    News    29 September 2017
  • BMO steps on the gas with debut ABS

    Bank of Montreal is marketing an inaugural auto securitisation, called Canadian Pacer Auto Receivabl...

    News    29 September 2017
  • First solar ABS looks to pay dividends

    Dividend Finance is in the market with its first term ABS securitisation collateralised by secured r...

    News    29 September 2017
  • Trustee role rewritten by court?

    A ruling by the UK High Court could have significant implications for trustees, potentially redefini...

    News Analysis    29 September 2017
  • Aviation ABS prepped for take-off

    Global Jet Capital is marketing an inaugural US$1.48bn aircraft ABS. Dubbed Business Jet Securities...

    News    28 September 2017
  • Standardisation to bridge synthetic STS gap?

    The EBA's recent discussion paper on significant risk transfer (SRT) outlines the common structural...

    News Analysis    28 September 2017
  • ReoCos boost Italian NPL prospects

    The Italian parliament recently approved new amendments to the Italian securitisation law, aimed at...

    News Analysis    28 September 2017
  • PCP agreements pressure UK ABS

    The increased use of personal contract purchase (PCP) agreements is putting pressure on UK auto ABS,...

    News    27 September 2017
  • Caribbean consumer deal prepped

    CFG Holdings is in the market with a consumer ABS backed by a pool of local currency fixed-rate pers...

    News    25 September 2017
  • SCI Start the Week - 25 September

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

    Pipeline Additions to the pipeline last week were fairly broadly split. There were five ABS added,...

    News    25 September 2017
  • Risk transfer round-up - 22 September

    A Barclays significant risk transfer deal planned for mid-September has reportedly been delayed unti...

    News    22 September 2017
  • EBA releases SRT discussion paper

    The EBA has released its significant risk transfer (SRT) discussion paper, the main elements of whic...

    News    20 September 2017
  • Smaller lessors lifting aircraft ABS

    Smaller aircraft lessors have increasingly tapped the ABS market over the last 18 months, with estab...

    News    18 September 2017
  • SCI Start the Week - 18 September

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

    Pipeline There was greater variety to last week's pipeline additions, with significantly fewer ABS...

    News    18 September 2017
  • 'Substantial' green ABS volumes eyed

    Vehicle and housing loans have the potential to produce substantial flows of large-scale green ABS t...

    News Analysis    18 September 2017
  • SCI Start the Week - 11 September

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

    Pipeline There were several additions to the pipeline last week, with ABS accounting for most of th...

    News    11 September 2017
  • Job swaps round-up - 8 September

    EMEA Tiger Risk UK has hired Michael Wade as a non-executive chair of TigerRisk Capital Markets an...

    Job Swaps    8 September 2017
  • Euro secondary returns

    The European securitisation secondary market is beginning to return to life after the summer. Augu...

    SCIWire    7 September 2017
  • Further ratings reviewed on margin requirements

    Fitch has placed 38 ABS tranches on rating watch negative, due to the reduced likelihood of counterp...

    News    4 September 2017
  • SCI Start the Week - 4 September

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

    Pipeline There were relatively few pipeline additions ahead of the Labor Day weekend. The final cou...

    News    4 September 2017
  • Job swaps round-up - 1 September

    EMEA Credit Suisse has hired Constantin Hulst as a CLO structurer to its European CLO origination...

    Job Swaps    1 September 2017