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.
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Bulking up
Securitisation capabilities stretched
DLA Piper bulked up its securitisation capabilities to 20 lawyers for Stack Infrastructure&rsquo...
News 12 April 2019 -
Foreclosure uncertainty
ECJ ruling leaves Spanish NPL investors in the dark
The European Court of Justice’s (ECJ) 26 March judgement on early-termination clauses in S...
News 12 April 2019 -
BWIC boom
Quarterly SCI data update
The first quarter of a year is usually quieter than the previous quarter and, for the most part, 1Q1...
News Analysis 11 April 2019 -
Real estate relief
NPL provisioning rules published
The European Council of Ministers has adopted new rules for the provisioning of non-performing loans...
News Analysis 10 April 2019 -
European bank in major restructure
Company hires and sector developments
COO hired Trepp has appointed Luis Amador as coo, reporting to ceo, Annemarie DiCola. Amador was r...
Market moves 9 April 2019 -
Independent director hired
Company hires and sector developments
Europe Prytania Asset Management has appointed Eric Felton as independent director. Most recently,...
Market moves 5 April 2019 -
Positive outlook
UTP securitisation prospects improve, despite challenges
Future issuance of unlikely-to-pay (UTP) securitisations depends on the resolution of two challenges...
News Analysis 5 April 2019 -
CEO appointed
Company hires and sector developments
CEO appointed DFG Investment Advisers has hired Oliver Wriedt as ceo. The firm is also unifying it...
Market moves 4 April 2019 -
Risk transfer round-up - 3 April
CRT sector developments and deal news
Deutsche Bank has completed its first capital relief trade for the year. Dubbed CRAFT 2019-1, the US...
News 3 April 2019 -
Obstacles remain
European Parliament postpones NPL trading vote
The European Parliament on Monday (1 April) postponed a vote on a non-performing loan secondary mark...
News 3 April 2019 -
Positive sentiment?
European ABS market update
European ABS primary issuance is gaining momentum, as the second quarter begins. Indeed, the variety...
Market Reports 2 April 2019 -
GSE reforms proposed
Sector developments and company hires
Debt service reserve guarantee provided Assured Guaranty (Europe) plc (AGE) has issued a &poun...
Market moves 1 April 2019 -
Irish BTL RMBS launched
Company hires and sector developments
Irish BTL RMBS launched Bank of Ireland has mandated a new Irish buy-to-let RMBS deal. Du...
Market moves 29 March 2019 -
CEO appointed
Sector developments and company hires
CEO appointed Curtis Arledge has joined Mariner Investment Group as chairman and ceo. In addition...
Market moves 28 March 2019 -
'Constant demand'
UK firms hiring across range of SF roles
Hiring in the UK structured finance space has been buoyant in the last 12 months, with recruitment a...
News Analysis 28 March 2019 -
Picking up pace
European ABS market update
European ABS secondary market activity has been relatively subdued so far this week. However, the pr...
Market Reports 28 March 2019 -
CRT credit event
Company hires and sector developments
CRT credit event HSBC’s Metrix series 2015-1 CLN has suffered another credit event. The...
Market moves 27 March 2019 -
Symbiotic relationship?
Marketplace lending enters the mainstream
The online lending sector has become mainstream, forcing marketplace platforms to better differentia...
News Analysis 27 March 2019 -
Granite refinancing
Sector developments and company hires
Europe Muzinich & Co has hired Laurence Kubli as structured credit specialist with immedia...
Market moves 25 March 2019 -
Purchase option to be exercised
Sector developments and company hires
EMEA Capzanine has appointed Renaud Tourmente as head of business development, effective from 6 M...
Market moves 22 March 2019 -
Goals aligned
Insurers target dual-tranche CRTs
Insurance firms are targeting mezzanine tranches in dual-tranche capital relief trades as banks warm...
News Analysis 22 March 2019