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.

• CLO firm boosts originations expertise

  Company hires and sector developments

  CLO firm boosts originations team Monroe Capital has expanded its direct originations team with th...

  Market moves    12 June 2019

• Advisor boosts SF expertise

  Sector developments and company hires

  Acquisitions Greensill has acquired receivables securitisation specialist Finacity which will now...

  Market moves    11 June 2019

• Europe sees 1Q issuance dip

  Sector developments and company hires

  ABS vet nabbed Angelo, Gordon & Co has hired Sunil Kothari as md, responsible for originat...

  Market moves    10 June 2019

• Livestock first inked

  Sector developments and company hires

  Australian livestock deal debuts StockCo has launched the first securitisation warehouse transacti...

  Market moves    7 June 2019

• Deleveraging continues

  UniCredit expands NPL ABS programme

  UniCredit has expanded its Sandokan non-performing loan ABS programme. While the transaction is bein...

  News    7 June 2019

• Risk transfer round-up - 7 June

  CRT sector developments and deal news

  Santander is believed to be readying three SME significant risk transfer transactions, along with a...

  News    7 June 2019

• 'Significant divergence' in Libor preparations

  Libor transition still 'choice rather than necessity' for some firms

  There are still a “number” of firms in the UK that view the transition from Libo...

  News    5 June 2019

• New P2P platform rules announced

  Sector developments and company hires

  ABS facility expands Amigo Holdings has increased its securitisation facility to £300m....

  Market moves    5 June 2019

• Easing up

  European ABS market update

  Activity levels have been high across European ABS/MBS and CLOs of late, but appear to be easing up...

  Market Reports    5 June 2019

• Agri-linked note prepped

  Company hires and sector developments

  Agri-linked note prepped The African Development Bank has approved a €100m partial credit...

  Market moves    4 June 2019

• JV announced

  Intrum acquires Piraeus platform

  Intrum is set to purchase Piraeus Bank’s servicing platform, which will be hived-off into...

  News    4 June 2019

• Bank bulks up commodities expertise

  Company hires and sector developments

  Bank bulks out commodities unit Credit Agricole has hired Aude Sauty de Chalon as directo...

  Market moves    3 June 2019

• Bank nabs CLO expert

  Company hires and sector developments

  Mizuho has hired Stefan Stefanov as director, Euro CLO specialist and he will report in to Juan-Carl...

  Market moves    31 May 2019

• STS not yet 'embraced'

  Ambiguity stifling STS label success

  Uptake of the STS label has been tentative and cannot be credited with the current strong momentum i...

  News Analysis    31 May 2019

• Pillar prepped

  Public Greek NPL ABS debuts

  DBRS has provided the first public rating for a non-performing loan securitisation in Greece as the...

  News Analysis    31 May 2019

• NPL securitisations eyed

  Fire, StormHarbour JV granted license

  Greek authorities have granted a license to EuPraxis, the joint venture between Italian servicer Fir...

  News Analysis    31 May 2019

• Indian RMBS market in the works?

  Sector developments and company hires

  Alt sales head hired Schroders has hired Peter Arnold to lead its alternative sales unit, which wa...

  Market moves    30 May 2019

• SCI podcast - episode 7 now live

  All the most pressing topics in structured finance discussed

  The latest edition of the SCI podcast is now live. This month, we take a look at servicing within su...

  News    30 May 2019

• Agency acquisition announced

  Sector developments and company hires

  Agency acquisition Morningstar has entered into a definitive agreement to acquire DBRS, t...

  Market moves    29 May 2019

• MPL ABS dissected

  Rating agencies clash over sector

  US marketplace loan (MPL) ABS transactions have seen steadily declining credit enhancement (CE) that...

  News    29 May 2019

• Interpretation issues

  Credit Suisse completes capital relief trade

  Credit Suisse has completed its first capital relief trade of the year, dubbed Elvetia Finance serie...

  News    29 May 2019