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.

  • Robo-advisors could boost RMBS quality

    Robo-advisors could improve consumer loan and mortgage affordability and strengthen pool quality in...

    News    19 July 2017
  • 'Brighter year' for securitisation recruitment

    The structured finance industry has seen one of its best years in terms of hiring since the financia...

    News Analysis    19 July 2017
  • Legal disputes weigh on NCSLT payoffs

    Ongoing legal disputes between several National Collegiate Student Loan Trust (NCSLT) transaction pa...

    News    19 July 2017
  • Swiss auto ABS taps Euro appetite

    BMW has priced its first public securitisation of Swiss auto lease receivables to feature a euro-den...

    News    18 July 2017
  • Synthetic expected loss approach outlined

    Scope has published research that offers a technical illustration of how the expected loss framework...

    News    18 July 2017
  • SCI Start the Week - 17 July

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

    Pipeline Pipeline activity stepped up again last week. The additions consisted of eight ABS, an I...

    News    17 July 2017
  • Job swaps round-up - 14 July

    North America Mortgage Capital Trading has hired Bill Berliner to the newly created role of direct...

    Job Swaps    14 July 2017
  • Inaugural NPL ABS launched

    Credit Valtellinese and Credit Siciliano have tapped the market with their first Italian non-perform...

    News    14 July 2017
  • Servicer consolidation boosts NPL recoveries

    The Italian servicing industry is experiencing a strong growth trend. Italian non-performing loan re...

    News Analysis    13 July 2017
  • Generali launches cat bond first

    GC Securities has priced the first 144A catastrophe bond that provides indemnity protection against...

    News    13 July 2017
  • Final STS document welcomed

    The European Parliament's economic and monetary affairs committee yesterday approved, as expected, t...

    News Analysis    12 July 2017
  • SCI Start the Week - 10 July

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

    Pipeline Pipeline activity picked up a little last week, but remained fairly muted. Additions con...

    News    10 July 2017
  • Attica deal unlikely to be replicated

    Greek bank Attica has announced a securitisation of €1.3bn of non-performing loans. Althou...

    News    7 July 2017
  • Job swaps round-up - 7 July

    North America Mayer Brown has hired Jay Kallas as counsel in its Chicago office, focusing on struc...

    Job Swaps    7 July 2017
  • ESBies unlikely to boost ABS

    The securitisation market is unlikely to see any benefit from the issuance of European safe bonds (S...

    News Analysis    7 July 2017
  • Risk transfer round-up - 7 July

    The second quarter appears to have been a quiet period in the risk transfer market, with only two ca...

    News    7 July 2017
  • Short-term STC consultation underway

    The Basel Committee and IOSCO have released consultative documents outlining criteria for identifyin...

    News    7 July 2017
  • Carige NPL deal unveiled

    Banca Carige has launched its keenly-anticipated non-performing loan securitisation (SCI 1 March). D...

    News    6 July 2017
  • Atlante II role confirmed in MPS deal

    The European Commission has approved a €5.4bn precautionary recapitalisation of Monte dei...

    News    5 July 2017
  • Retail woes could hit card ABS

    Store closures across the US are expected to negatively impact credit card ABS trusts, due to their...

    News    4 July 2017
  • SCI Start the Week - 3 July

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

    PipelineOnly a handful of transactions remained in the pipeline last week. Of these, RMBS accounted...

    News    3 July 2017