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.


  • ILS firm seeks P2P platform funding

    Sequant Re is looking to raise capital through a peer-to-peer platform which connects investors dire...

    News    5 May 2017
  • Risk transfer round-up - 5 May

    Capital relief trade activity has been relatively subdued this week. However, sources report that th...

    News    5 May 2017
  • Alitalia exposure examined

    Italy's troubled flagship airline Alitalia has been placed under special administration. Should the...

    News    4 May 2017
  • Irish NPL wave expected

    Allied Irish Bank last month sold €400m gross book value of non-performing buy-to-let loan...

    News Analysis    3 May 2017
  • Credit card charge-offs ramp up

    Several US credit card banks have reported higher-than-expected net charge-off rates on their card p...

    News    3 May 2017
  • Chinese NPL ABS to expand

    The Chinese government is set to allow some mid-sized banks to issue non-performing loan ABS this ye...

    News    2 May 2017
  • Job swaps round-up - 28 April

    EMEA Ashurst has promoted Alex Biles and Malcolm Charles to its partnership in London. Biles advis...

    Job Swaps    28 April 2017
  • Multi-seller ABS approach to flourish

    Marketplace loan ABS involving a multi-seller approach is expected to become more commonplace, due t...

    News Analysis    28 April 2017
  • Risk transfer round-up - 28 April

    Deutsche Bank closed its CRAFT CLO 2017-1 this week (see SCI's capital relief trades database). The...

    News    28 April 2017
  • Cypriot securitisation bill pending

    A new Cypriot securitisation framework is currently pending parliamentary approval. The bill is expe...

    News    27 April 2017
  • 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