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 - 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
  • IBRD debuts pandemic cat bonds

    The World Bank has launched US$320m pandemic catastrophe bonds, with the aim of providing financial...

    News    30 June 2017
  • Risk transfer round-up - 30 June

    The EIF has recently signed guarantees with five banks in Romania under its SME initiative (SCI 12 M...

    News    30 June 2017
  • EV idiosyncratic risks highlighted

    The inclusion of electric vehicles (EVs) in future European auto ABS collateral pools could introduc...

    News    29 June 2017
  • Euro secondary solid

    The European securitisation secondary market remains solid despite distractions from primary and mon...

    SCIWire    29 June 2017
  • Private SLABS upgrades anticipated

    Moody's has placed on review for possible upgrade the ratings of 41 private student loan ABS bonds -...

    News    27 June 2017
  • US ABS accelerates

    Activity in the US ABS secondary market has begun to accelerate this week. After several weeks of...

    SCIWire    27 June 2017
  • Euro secondary steps up

    Activity has started to step up across the European securitisation secondary market following an ext...

    SCIWire    27 June 2017
  • Veneto liquidation opens NPL ABS opportunities

    Veneto Banca and Banca Popolare di Vicenza will be wound down after the ECB confirmed that they are...

    News Analysis    26 June 2017
  • Lender targets in-school and refi loans

    College Avenue Student Loans is in the market with its first rated term ABS, dubbed College Ave Stud...

    News    26 June 2017
  • SCI Start the Week - 26 June

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

    PipelineA mix of new deals - both in terms of collateral type and jurisdiction -...

    News    26 June 2017
  • Data drought impedes NPL ABS growth

    Incomplete data and inadequate servicing infrastructure continues to beset the European non-performi...

    News Analysis    23 June 2017
  • IFRS 9 to spur risk transfer trades

    Higher expected provisioning under IFRS 9 is expected to spur a slew of risk transfer issuance befor...

    News Analysis    23 June 2017
  • Risk transfer round-up - 23 June

    Sources refer to heightened activity in the capital relief trades market, with many deals awaiting f...

    News    23 June 2017
  • Whole business ABS prepped

    Jimmy John's is in the market with its debut whole business securitisation. The US$850m ABS is backe...

    News    20 June 2017
  • Regulatory boost for risk transfer trades

    Balance sheet synthetic securitisation volume is predicted to rise in the coming years, with greater...

    News Analysis    20 June 2017
  • SCI Start the Week - 19 June

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

    Pipeline A rush of ABS deals joined the pipeline last week, picking up from the limited activity of...

    News    19 June 2017
  • Time to taper?

    Participants at IMN's Global ABS conference recently suggested that quantitative easing is likely to...

    Talking Point    19 June 2017
  • Risk transfer round-up - 16 June

    One talking point this week was the EBA's announcement at IMN's Global ABS conference of its intenti...

    News    16 June 2017
  • STS could take a year, but optimism prevails

    The implementation of the STS securitisation framework is unlikely to be completed within a year, ac...

    News Analysis    16 June 2017
  • International investment boost for China

    Shorevest Capital Partners has launched a US$750m fund targeting Chinese non-performing loans. The m...

    News    15 June 2017