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.


  • Euro secondary stifled

    The hoped for boom in the European securitisation secondary market this week is be...

    SCIWire    27 April 2017
  • First EFSI risk transfer boosts SME lending

    The EIB Group has provided a mezzanine tranche guarantee of around €90m to Commerzbank in...

    News    26 April 2017
  • Debut issuer brings unusual ILS

    NMI Holdings has priced US$211.3m of 10-year mortgage insurance-linked notes. The ILS, Oaktown Re Se...

    News    26 April 2017
  • Bill to repeal Dodd-Frank scrutinised

    Hearings are scheduled for today on a draft bill published last week by House Republicans which woul...

    News    26 April 2017
  • Wireless spectrum auction 'ABS positive'

    T-Mobile won the most number of licences in the US Federal Communication Commission's 600-megahertz...

    News    25 April 2017
  • Basel 4 raises Dutch SRT prospects

    Higher capital requirements mooted under Basel 4 are likely to disproportionately affect Dutch banks...

    News Analysis    25 April 2017
  • Euro secondary boosted

    The European securitisation secondary market has been boosted by the first round result in the Frenc...

    SCIWire    25 April 2017
  • European hot spots highlighted

    CLOs and RMBS are seen as the main growth areas in the European securitisation market at present. Dr...

    Talking Point    24 April 2017
  • SCI Start the Week - 24 April

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

    Pipeline Additions to the pipeline were focused on ABS and RMBS last week, with the former dominati...

    News    24 April 2017
  • Record cat bond issuance assessed

    The average size of catastrophe bonds climbed significantly - by 31% - to US$292m in 1Q17,...

    News    21 April 2017
  • Risk transfer round-up - 21 April

    The EIF returned to the risk transfer market this week, with a €90m mezzanine guarantee fo...

    News    21 April 2017
  • Job swaps round-up - 21 April

    North America Morningstar has hired Charles Citro as md for CMBS ratings and analytics, based in N...

    Job Swaps    21 April 2017
  • Coinstar ABS debuts

    Coinstar is marketing its inaugural US$900m whole business securitisation. Coinstar Funding Series 2...

    News    20 April 2017
  • Euro ABS/MBS picks up

    Activity in the European ABS/MBS secondary market is picking up after the Easter break. Yesterday...

    SCIWire    20 April 2017
  • Tranched cover trades gaining traction

    Tranched cover synthetic securitisation issuance is picking up in Europe, as regulatory capital requ...

    News Analysis    18 April 2017
  • Chinese NPL ABS growing in size and diversity

    The Chinese non-performing loan securitisation sector is set to grow, adding to the existing RMB16.3...

    News    13 April 2017
  • Floating-rate ABS lacks support for growth

    Lack of demand will likely limit the growth of floating-rate ABS and CMBS in the US, despite rising...

    News Analysis    13 April 2017
  • New ABCP conduit launches

    A new European ABCP conduit has launched, securitising insured trade receivables that are fully guar...

    News    12 April 2017
  • Debut consumer ABS prepped

    Tidewater is marketing its first term consumer finance ABS. Dubbed Tidewater Sales Finance Master Tr...

    News    11 April 2017
  • Euro secondary ebbs and flows

    Activity in the European securitisation secondary market continues to ebb and flow. Trading patter...

    SCIWire    11 April 2017
  • SCI Start the Week - 10 April

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

    Pipeline ABS names once again made up the majority of last week's pipeline additions. There were al...

    News    10 April 2017