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.


  • Aussie card ABS prepped

    Latitude Finance Australia is in the market with a rare Australian credit card ABS. Dubbed Latitude...

    News    6 March 2017
  • SCI Start the Week - 6 March

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

    Pipeline The volume of additions to the pipeline increased a little last week. There were eight new...

    News    6 March 2017
  • Marketplace ABS disparate but stronger

    Investor confidence in marketplace lending appears to have rebounded after a drop-off in 1H16, but t...

    News Analysis    6 March 2017
  • Risk transfer round-up - 3 March

    Intesa Sanpaolo Group has completed a €2.5bn synthetic SME securitisation through its GARC...

    News    3 March 2017
  • German shipping loss provisions on the rise

    Loss provisions against non-performing shipping loans by German banks are on the rise, due to the sl...

    News    2 March 2017
  • Proposed retention metric assessed

    Risk retention regulations in Europe and the US are severely flawed with respect to their key intent...

    News    1 March 2017
  • Carige NPL strategy unveiled

    The Banca Carige board of directors yesterday unanimously approved an updated strategic plan, under...

    News    1 March 2017
  • Court makes Madden usury ruling

    Midland Funding violated New York usury laws by charging interest rates of over 25% to borrowers, th...

    News    1 March 2017
  • Blockchain applications explored

    The Chamber of Digital Commerce and SFIG have formed a strategic partnership focused on advancing th...

    News    28 February 2017
  • Trading expansion underlines optimism

    INTL FCStone's broker-dealer rates group has expanded its trading remit into US agency CMBS and a wi...

    News    28 February 2017
  • Leverage signals maturing CRT market

    The increasing availability of leverage suggests that the risk transfer market is maturing. However,...

    News Analysis    27 February 2017
  • SCI Start the Week - 27 February

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

    Pipeline Additions to the pipeline last week were fairly steady compared to the week before, as the...

    News    27 February 2017
  • German NPL sales to accelerate

    Germany's positive economic outlook and the loans' relatively low cost of capital have historically...

    News Analysis    27 February 2017
  • Rare consumer ABS readied

    A rare UK consumer loan ABS has hit the market. Creation Consumer Finance's £535.69m LaSer...

    News    27 February 2017
  • Risk transfer round-up - 24 February

    Several risk transfer securitisations are understood to have entered the pipeline this past week. ...

    News    24 February 2017
  • FFELP rating actions revealed

    Fitch has disclosed the rating actions resulting from the update to its US FFELP student loan ABS cr...

    News    24 February 2017
  • Investment differentiation

    SCI's profile questions are answered by Triphonas Kyriakis, md for analytics at MSCI; Raghu Suryanar...

    Provider Profile    24 February 2017
  • Warm investor response for debut turboprop ABS

    Elix Capital has closed its debut securitisation of turpoprop aircraft at a time when investors are...

    News Analysis    23 February 2017
  • Slow start to year 'not concerning' for Euro ABS

    The European securitisation market started the year with its traditional quiet January, but issuance...

    News Analysis    23 February 2017
  • Risk transfer benchmark introduced

    PCS has launched the first risk transfer quality label for synthetic risk transfer deals. One of the...

    News    23 February 2017
  • Euro ABS/MBS edges in

    European ABS/MBS secondary spreads continue to edge in. "The market remains strong and well-suppor...

    SCIWire    23 February 2017