Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London


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 secondary restarts

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

    SCIWire    4 April 2017
  • Portuguese NPL prospects boosted

    Lone Star is set to acquire 75% of Novo Banco, Portugal's third largest lender, in return for a &...

    News Analysis    3 April 2017
  • SCI Start the Week - 3 April

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

    Pipeline The pipeline comprised a mixed bag of issuers last week. ABS deals once again dominated th...

    News    3 April 2017
  • Job swaps round-up - 31 March

    EMEA EJF Capital is to float its closed-ended investment fund on the London Stock Exchange. Dubbed...

    Job Swaps    31 March 2017
  • Legislation, growth drive Cyprus turnaround

    Cyprus's non-performing exposures (NPE) ratio has experienced significant improvements, given strong...

    News Analysis    31 March 2017
  • Debut prime auto ABS prepped

    GM Financial is in the market with its inaugural prime auto loan ABS. The US$1bn GM Financial Consum...

    News    31 March 2017
  • Euro ABS/MBS unchanged

    Spreads and activity levels remain unchanged across the European ABS/MBS secondary market. A combi...

    SCIWire    30 March 2017
  • 'Less conventional' auto ABS to emerge?

    Moody's expects German carmakers to offer attractive financing terms and retain residual value risks...

    News    29 March 2017
  • Income-contingent SLABS approach revealed

    Further details have emerged of the UK government's £3.94bn Income Contingent Student Loans...

    News    29 March 2017
  • Euro secondary unmoved

    The European securitisation secondary market remains unmoved by wider market volatility. The see-s...

    SCIWire    28 March 2017
  • SCI Start the Week - 27 March

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

    PipelineInsurance-linked securities dominated the transactions remaining in the pipeline last week,...

    News    27 March 2017
  • Job swaps round-up - 24 March

    North America Alcentra has hired Brandon Chao as svp in New York, joining from Omega Advisors, whe...

    Job Swaps    24 March 2017
  • Risk transfer round-up - 24 March

    Deutsche Bank is believed to have priced its CRAFT CLO 2017-1 capital relief trade this week (SCI 17...

    News    24 March 2017
  • Canadian banks eye credit card appetite

    Canadian banks are capitalising on strong demand for US dollar-denominated credit card ABS. The sect...

    News Analysis    24 March 2017
  • US ABS holds on

    Despite a boom in supply US ABS secondary spreads are holding on. After a quiet week last week, th...

    SCIWire    23 March 2017
  • Russian SME ABS sets the standard

    The Russian SME loan market is anticipated to grow, with further SME ABS issuance following suit. As...

    News    22 March 2017
  • Counterparty revisions to hit EMEA ABS

    Moody's is requesting comments on proposals to consolidate and revise its approaches to assessing a...

    News    22 March 2017
  • Lender actions key to managing auto losses

    Rising losses across the US auto ABS sector are at odds with strong economic conditions and low unem...

    News Analysis    21 March 2017
  • Euro secondary ticks over

    The European securitisation secondary market continues to tick over. Activity remains pat...

    SCIWire    21 March 2017
  • SCI Start the Week - 20 March

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

    Pipeline Last week's additions to the pipeline took a slightly heavier skew towards ABS. There were...

    News    20 March 2017
  • Job swaps round-up - 17 March

    EMEA Dentons has formed a securitisation team in Germany by hiring Arne Kluwer,...

    Job Swaps    17 March 2017