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.

• US CMBS 'not fixed'

  Wave of CMBS litigation may arise from systemic sector problems

  US CMBS litigation is currently in the spotlight, with one of the largest ever US fraud investigatio...

  News Analysis    26 September 2018

• CRT line-up finalised

  SCI seminar to assess regulatory threats and opportunities

  The line-up for SCI’s 4th Annual Capital Relief Trades Seminar – taking place on...

  News    25 September 2018

• SCI Start the Week - 24 September

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

  Pipeline RMBS dominated the newly-announced deals remaining in the pipeline by the end of last week...

  News    24 September 2018

• Market moves - 21 September

  All the latest company developments and new hires in the structured finance sector

  Acquisitions HPS Investment Partners has acquired Tålamod Asset Management. HPS will ret...

  Market moves    21 September 2018

• GACS expansion?

  UTP extension questioned

  The recent extension of the GACS guarantee scheme is expected to further fuel Italian non-performing...

  News Analysis    21 September 2018

• Irish RMBS focus

  European ABS market update

  A rare Irish non-conforming RMBS has caught the attention of European ABS market participants, follo...

  Market Reports    18 September 2018

• Revised NPL templates published

  Insolvency data rendered more dynamic

  The EBA last week published a revised version of its standardised non-performing loan data templates...

  News Analysis    17 September 2018

• SCI Start the week - 17 September

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

  Pipeline ABS is still dominating the pipeline, with several deals coming from the auto space. Th...

  News    17 September 2018

• Preference for yield

  Conference delays new issues

  The US ABS secondary market is seeing a big demand for higher-yielding sectors like renewables, even...

  Market Reports    14 September 2018

• Market moves - 14 September

  New hires and company developments in the structured finance sector

  CDS ETF Launched Tabula has launched a European CDS ETF which offers passive exposure to European...

  Market moves    14 September 2018

• Euro ABS activity surges

  Investors finding value across asset classes

  The ABS secondary market has been very BWIC driven with large volumes coming through. A Greek RMBS i...

  Market Reports    14 September 2018

• Madden resolution urged

  US marketplace lending firms should be freed from restraints around “true lender&rdquo...

  News Analysis    12 September 2018

• Euro RMBS picks up

  Markets moving again after summer lull

  In the first week of September the market seems to be coming back to life after the lull of August a...

  Market Reports    10 September 2018

• SCI Start the week - 10 September

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

  Pipeline A fairly even split of auto and non-auto ABS in the pipeline this week:  Auto...

  News    10 September 2018

• Risk transfer round-up - 7 September

  CRT sector developments and deal news

  Caixabank is rumoured to be prepping an SME significant risk transfer transaction for 4Q18. This wou...

  News    7 September 2018

• Chain reaction

  ABS issuers exploring distributed ledger technology

  Numerous ABS issuers are exploring how to leverage blockchain technology to execute traditional secu...

  News Analysis    7 September 2018

• Increased obligations weighed

  ESMA outlines expanded reporting requirements

  ESMA last month published final draft technical standards on the new reporting requirements to be im...

  News Analysis    6 September 2018

• Finding the efficient frontier

  Dominik Hagedorn, co-founder at Tangency Capital, answers SCI's questions

  Q: How and when did Tangency Capital become involved in the ILS market? A: Tangency Capital was lau...

  The Structured Credit Interview    6 September 2018

• GACS extended

  European Commission approves guarantee extension

  The European Commission has approved a second extension of the GACS guarantee scheme for the senior...

  News Analysis    5 September 2018

• SME SRT completed

  Intesa taps Italian government guarantee fund

  Intesa Sanpaolo has completed a guarantee agreement with Fondo Centrale di Garanzia, the Italian gov...

  News    3 September 2018

• Chinese online ABS develops

  Regulation, data inconsistencies hamper industry

  Fitch recently rated its first ever ABS backed by Chinese online consumer loans, in the form of the...

  News Analysis    3 September 2018