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.

• New ventures

  Asset manager building out structured credit strategies

  BlueBay is expanding its structured finance and CLO investment strategies.&nbs...

  News Analysis    9 August 2019

• Risk transfer round-up - 9 August

  CRT sector developments and deal news

  BNP Paribas is rumoured to be prepping a corporate capital relief trade for 3Q19. The lender&rsq...

  News    9 August 2019

• NPL disposals sealed

  Two banks offload Italian loan portfolios

  Two disposals of Italian non-performing and performing loans (NPLs) originated by Unicredit and ING...

  News    8 August 2019

• Branching out

  UK marketplace lender brings US deal

  Funding Circle Holdings is in the market with its first ABS collateralised by loans made to SMEs inc...

  News    7 August 2019

• Alt credit co-head hired

  Company hires and sector developments

  Alt credit co-head nabbed Ares has hired Joel Holsinger to its credit group as c...

  Market moves    7 August 2019

• JV agreed

  Intesa readies UTP securitisation

  Intesa San Paolo has reached an agreement with Prelios that involves the securitisation of a &eu...

  News    7 August 2019

• Whole biz debut double

  Early learning, pet supply franchises securitised

  Two US whole business securitisations are marketing, representing debut transactions from both firms...

  News    6 August 2019

• CLO partner appointed

  Sector developments and company hires

  CLO firm partner promotion DFG Investment Advisers has promoted Timothy Milton to partner. Since j...

  Market moves    6 August 2019

• SCI Start the Week - 5 August

  A review of securitisation activity over the past seven days

  Market commentary Portuguese RMBS outperformed other securitisation asset classes last week, booste...

  News    5 August 2019

• CLO head hired

  Sector developments and company hires

  BUMF 6 injunctions granted Final injunctions have been granted against Greencoat Investments (GIL)...

  Market moves    2 August 2019

• Landmark SRTs inked

  BP Bari completes capital relief trades

  Banca Popolare di Bari has completed two capital relief trades that reference respectively a &eu...

  News    2 August 2019

• COSME tapped

  SME risk-sharing agreement signed

  Italian national promotional bank Cassa Depositi e Prestiti (CDP) has tapped the EU's COSME...

  News    1 August 2019

• NPL SRT inked

  Hoist Finance tackles backstop regulation

  Hoist Finance has sold a €225m portfolio of Italian unsecured non-performing loans via an u...

  News Analysis    1 August 2019

• Affordable loan credit insurance risk transfer closed

  Sector developments and company hires

  Affordable CIRT closed Fannie Mae has executed a new credit insurance risk transfer (CIRT) transac...

  Market moves    31 July 2019

• New podcast now live

  The operational steps to setting up a CRT and more...

  In this week's podcast, the team discuss the operational steps taken when putting t...

  News    31 July 2019

• Turning point

  Catastrophe bonds could see a redirection of spreads

  The past two years of record-breaking reinsurance losses, along with technically-driven spread widen...

  News Analysis    31 July 2019

• Winding up order issued for Clifden

  Company hires and sector developments

  Clifden wind up A winding-up order has been issued by the High Court of Justice of the Isle of Man...

  Market moves    29 July 2019

• SCI Start the Week - 29 July

  A review of securitisation activity over the past seven days

  Transaction of the week Unusual securitisation backed by music rights collateral (SCI 23 July) SE...

  News    29 July 2019

• BMO SRT launched

  BMO expands mid-market exposure

  Bank of Montreal (BMO) has completed a five-year financial guarantee that references US and Canadian...

  News    26 July 2019

• Mortgage firm completes residuals sale

  Company hires and sector developments

  Residual sale Charter Mortgages is set to sell its residual economic interest in the Precise Mortg...

  Market moves    26 July 2019

• Funding trade

  Trade finance fund utilises securitisation technology and assets

  Finance securitisation specialist Channel Capital Advisors has launched its first trade finance fund...

  News    25 July 2019