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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.


  • Risk transfer round-up - 12 January

    Details have emerged of a Lloyds capital relief trade dubbed Cheltenham Securities 2017. The transac...

    News    12 January 2018
  • Barclays adds to US CRT impetus

    Barclays recently completed Colonnade Global 2017-4 Financial Guarantee, a rare US$100m risk transfe...

    News Analysis    11 January 2018
  • UBI Banca debuts SRT

    UBI Banca has executed its first capital relief trade, dubbed UBI 2017 RegCap 1. The approximately &...

    News    10 January 2018
  • SCI Start the Week - 8 January

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

    Pipeline There were a few deals added to the pipeline in the first week of the year. These were fou...

    News    8 January 2018
  • CRTs coming to America?

    Capital relief trades (CRTs) have become an established feature of the European securitisation marke...

    News Analysis    8 January 2018
  • Risk transfer round-up - 5 January

    Deutsche Bank is understood to have closed two CRAFT risk transfer transactions, a bilateral deal an...

    News    5 January 2018
  • Market moves - 5 January

    Acquisitions/Investments SoftBank Group Corp has acquired Fortress Investment Group for US$3.3bn in...

    Market moves    5 January 2018
  • China aircraft ABS placed publicly

    China Asset Leasing Group Holdings (CALC) has launched China's first ABS denominated and settled in...

    News    4 January 2018
  • 'Unique' French windstorm ILS placed

    Willis Towers Watson placed €90m of ILS for Covea Mutual Insurance Group last month in a "...

    News    3 January 2018
  • Dynamica makes ABS bow

    Dynamica Retail has issued its first salary assignment and payment delegation loans transaction in I...

    News    3 January 2018
  • Job swaps round-up - 22 December

    CDS options clearing LCH's CDSClear has become the first platform to clear credit index options, w...

    Job Swaps    22 December 2017
  • Embracing a tactical approach

    David Moffitt, head of tactical investment opportunities at LibreMax Capital, answers SCI's question...

    The Structured Credit Interview    22 December 2017
  • SRT investor concerns disclosed

    AFME, in association with the International Association of Credit Portfolio Managers (IACPM), has re...

    News    21 December 2017
  • Sharp rise in Italian NPL ABS expected

    Italy is set to see a jump in GACS-eligible securitisations in 2018, potentially totalling ̈́...

    News    21 December 2017
  • Landmark shipping SRT completed

    Further details have emerged of Nord LB's landmark shipping significant risk transfer trade (SCI 8 D...

    News    20 December 2017
  • IFRS 9 volatility persists

    The Bank of England did not disclose any data on the capital impact of IFRS 9, following the recent...

    News Analysis    20 December 2017
  • Esoterics shine in 2017

    The US esoteric ABS market has gone from strength to strength in 2017, as investors gained comfort w...

    News Analysis    20 December 2017
  • Broad-based recovery underlined

    The global securitisation markets continued their broad-based recovery in 2017, with total issuance...

    News Analysis    20 December 2017
  • PPC benchmark securitisation pending

    Finacity has been awarded the role of securitisation advisor on behalf of Greece's Public Power Corp...

    News    19 December 2017
  • SCI Start the Week - 18 December

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

    Pipeline ABS additions to the pipeline finally dropped off last week, but RMBS, CMBS and CLOs conti...

    News    18 December 2017
  • Debut Russian RMBS 'just the start'

    VTB Capital has closed an inaugural RMBS under the Russian government-backed AHML programme, which t...

    News Analysis    15 December 2017