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


  • SCI Start the Week - 2 September

    A review of securitisation activity over the past seven days

    Market commentary A new Fitch study shows that there is a wide range in trustee reported market val...

    News    2 September 2019
  • Strong performance

    Refi PSL ABS upgraded

    Moody's has lowered its expected default rate for typical unseasoned refinancing private stu...

    News    30 August 2019
  • Regulatory boost

    Italian SRT issuance picks up

    Italian capital relief trades are experiencing a strong pick-up in issuance this year as regulatory...

    News Analysis    30 August 2019
  • Portuguese ABS framework updated

    Sector developments and company hires

    Portuguese ABS framework updated A new regulation has been introduced in Portugal providing for th...

    Market moves    30 August 2019
  • NPL relief

    ECB extends provisioning calendar

    The ECB is set to align its supervisory expectations regarding the provisioning of new non-performin...

    News Analysis    30 August 2019
  • Esoteric opportunities

    Structured solutions to address corporate risk transfer needs

    The newly-formed CAC Specialty (SCI 21 August) is seeking to capitalise on the convergence of the in...

    News    30 August 2019
  • Structured credit head steps down

    Company hires and sector developments

    BUMF 6 claim filed Business Mortgage Finance 6 has issued a claim against Roundstone Technologies...

    Market moves    29 August 2019
  • Back to work

    UK deal flow restarts ahead of expected busy months ahead

    Oak No. 3 has become the first ‘post-summer’ UK ABS/MBS deal to price. It is exp...

    News Analysis    29 August 2019
  • Risk transfer round-up - 28 August

    CRT sector developments and deal news

    Credit Suisse has called two transactions from its Magnolia Finance V programme. The transactions we...

    News    28 August 2019
  • 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