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.

• Euro ABS/MBS unchanged

  Trading patterns in the European ABS/MBS secondary market remain unchanged. The lack of primary su...

  SCIWire    15 June 2017

• Prosecutors probe valuations process

  US prosecutors, after years spent studying the sell-side, appear to be turning their attentions to t...

  News Analysis    14 June 2017

• ABS first for marketplace lender

  Lending Club in in the market with a US$279.38m ABS backed by near-prime unsecured consumer loans or...

  News    13 June 2017

• Euro secondary flickers

  The European securitisation secondary market is slowly flickering back to life. Overall, all ABS/M...

  SCIWire    13 June 2017

• Spanish EFSI deal debuts

  The EIF has closed its second European Fund for Strategic Investments (EFSI) deal, providing BBVA wi...

  News    12 June 2017

• SCI Start the Week - 12 June

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

  Pipeline It was another week of limited pipeline activity, although several CMBS have been announce...

  News    12 June 2017

• Job swaps round-up - 9 June

  North America Brian Ford has been appointed head of structured finance research at Kroll Bond Rati...

  Job Swaps    9 June 2017

• Bankruptcy reform opens floodgates

  India's bankruptcy law has attracted increased investment in its non-performing loan market, followi...

  News Analysis    9 June 2017

• CHOICE Act passes in House

  The US House of Representatives has passed the Financial CHOICE Act. The legislation aims to replace...

  News    9 June 2017

• MPS solvency plan outlined

  Monte dei Paschi di Siena (MPS) has set out a plan to demonstrate its solvency to regulators, paving...

  News Analysis    8 June 2017

• European market growth predicted

  European securitisation market participants expect the number of investors to grow and participation...

  News    6 June 2017

• SCI Start the Week - 5 June

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

  Pipeline With many market participants decamping to Barcelona this week for the industry conference...

  News    5 June 2017

• Marketplace ABS evolving

  At the upcoming SCI Marketplace Lending Securitisation Seminar in New York on 22 June, panellists wi...

  Talking Point    5 June 2017

• STS strikes investor and issuer balance

  Further details have emerged over the STS securitisation agreement that was finalised this week (SCI...

  News Analysis    2 June 2017

• Risk transfer round-up - 2 June

  Dynamic Credit is prepping another Dutch RMBS originated under the ELAN Woninghypotheken brand. Dubb...

  News    2 June 2017

• MARF listing breaks new ground

  The Mercado Alternativo de Renta Fija (MARF) has admitted a new synthetic securitisation dubbed FT P...

  News    1 June 2017

• Euro secondary sporadic

  The European securitisation secondary market continues to exhibit the pattern of recent weeks with s...

  SCIWire    1 June 2017

• STS framework finalised

  A deal has been reached on the long-awaited new EU securitisation regulations, including a framework...

  News    31 May 2017

• Credit-scoring models contrasted

  The importance to ABS of the VantageScore credit-scoring model continues to grow, with structured fi...

  News    31 May 2017

• Irish central bank steps up NPL pressure

  The governor of the Central Bank of Ireland stated this week that the pace of NPL reduction in Irela...

  News Analysis    26 May 2017

• Risk transfer round-up - 26 May

  According to sources Barclays is prepping a deal, although the underlying asset is unknown. Given th...

  News    26 May 2017