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.


  • 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
  • Job swaps round-up - 21 April

    North America Morningstar has hired Charles Citro as md for CMBS ratings and analytics, based in N...

    Job Swaps    21 April 2017
  • Coinstar ABS debuts

    Coinstar is marketing its inaugural US$900m whole business securitisation. Coinstar Funding Series 2...

    News    20 April 2017
  • Euro ABS/MBS picks up

    Activity in the European ABS/MBS secondary market is picking up after the Easter break. Yesterday...

    SCIWire    20 April 2017
  • Tranched cover trades gaining traction

    Tranched cover synthetic securitisation issuance is picking up in Europe, as regulatory capital requ...

    News Analysis    18 April 2017
  • Chinese NPL ABS growing in size and diversity

    The Chinese non-performing loan securitisation sector is set to grow, adding to the existing RMB16.3...

    News    13 April 2017
  • Floating-rate ABS lacks support for growth

    Lack of demand will likely limit the growth of floating-rate ABS and CMBS in the US, despite rising...

    News Analysis    13 April 2017
  • New ABCP conduit launches

    A new European ABCP conduit has launched, securitising insured trade receivables that are fully guar...

    News    12 April 2017
  • Debut consumer ABS prepped

    Tidewater is marketing its first term consumer finance ABS. Dubbed Tidewater Sales Finance Master Tr...

    News    11 April 2017
  • Euro secondary ebbs and flows

    Activity in the European securitisation secondary market continues to ebb and flow. Trading patter...

    SCIWire    11 April 2017
  • SCI Start the Week - 10 April

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

    Pipeline ABS names once again made up the majority of last week's pipeline additions. There were al...

    News    10 April 2017
  • Job swaps round-up - 7 April

    North America KeyBanc Capital Markets has hired Chris O'Neill and Jeffrey Tucker to its securitise...

    Job Swaps    7 April 2017
  • Risk transfer round-up - 7 April

    Activity in the capital relief trade space appears to be increasing in line with expectations of mor...

    News    7 April 2017
  • Chinese auto ABS hits top rating

    The first Chinese auto loan ABS to receive a triple-A rating from S&P is currently marketing...

    News    7 April 2017
  • China tipped as next NPL frontier

    Distressed debt investors are becoming more active in the Chinese non-performing loan market. Recent...

    News Analysis    6 April 2017
  • Euro ABS/MBS active

    The European ABS/MBS secondary market is once again active without yet fully taking off. "Secondar...

    SCIWire    6 April 2017
  • Synthetics to receive an STS designation?

    Momentum is growing for a simple, standardised and transparent (STS) designation for synthetic secur...

    News Analysis    5 April 2017
  • Diverse solar ABS announced

    Sunnova Energy is marketing its inaugural US$254.75m securitisation. Dubbed Helios Issuer Series 201...

    News    4 April 2017
  • US ABS keeps tight

    US ABS secondary spreads are keeping tight as the new quarter begins. The run-in for the last quar...

    SCIWire    4 April 2017
  • Leverage ratio driving off-balance sheet trend

    A number of European banks - including Rabobank and Credit Foncier - are becomin...

    News Analysis    4 April 2017
  • Euro secondary restarts

    The turn of the quarter has restarted activity in the European securitisation secondary market. Fl...

    SCIWire    4 April 2017