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.

• CQS SRT finalised

  Unusual reference pool securitised

  An unusual significant risk transfer transaction referencing a €1.78bn static portfolio of...

  News    24 December 2019

• SCI Start the Week - 23 December

  A review of securitisation activity over the past seven days

  Transaction of the week A pair of Italian non-performing loan securitisations – dubbed Fu...

  News    23 December 2019

• MNHD plans programmatic issuance

  Sector developments and company hires

  Egyptian securitisation debuts Egyptian real estate developer Madinet Nasr Housing and Development...

  Market moves    23 December 2019

• Nordic SRT inked

  Nordea returns with capital relief trade

  Nordea has priced a €5.1bn synthetic securitisation of Nordic corporate and SME loans. Dubb...

  News    20 December 2019

• SCI's latest podcast is now live!

  The editorial team discuss key issues in securitisation today...

  In this episode of the SCI podcast, Mark Pelham and Corinne Smith discuss our new research report on...

  News    19 December 2019

• Risk participation programme agreed

  Sector developments and company hires

  CLO vulnerabilities eyed The Financial Stability Board has published a report assessing the financi...

  Market moves    19 December 2019

• GSE price-fixing lawsuit settled

  Sector developments and company hires

  CLO manager transfer Hunt Investment Management has assigned collateral manager duties for the Hunt...

  Market moves    18 December 2019

• UK auto SRT finalised

  Santander completes retained first-loss deal

  Santander has completed a synthetic securitisation of UK auto loans. Dubbed Motor Securities 2018-1,...

  News    18 December 2019

• NPL ABS pair inked

  Guber, UBI Banca hit the market

  A pair of Italian non-performing loan securitisations – dubbed Futura 2019 and Iseo SPV &a...

  News    17 December 2019

• Structured credit pro returns to the buy-side

  Sector developments and company hires

  EMEA Kingswood Holdings has appointed Lindsey McMurray and Howard Garland to its board from Polle...

  Market moves    17 December 2019

• Economic efficiency

  Standardised bank SRT pros, cons weighed

  Various factors should be considered when contemplating whether to execute a significant risk transf...

  News Analysis    16 December 2019

• Brand value

  WBS issuer differentiation highlighted

  In an unsolicited comment, Fitch last week suggested that the overall benefits of US whole business...

  News Analysis    16 December 2019

• SCI Start the Week - 16 December

  A review of securitisation activity over the past seven days

  Transaction of the week The National Bank of Greece has completed its first secured non-performing...

  News    16 December 2019

• Risk transfer round-up - 16 December

  CRT sector developments and deal news

  Deutsche Bank is rumoured to be readying a capital relief trade from the CRAFT programme. The last C...

  News    16 December 2019

• Mixed motivations

  THRP sets stage for US bank CRT

  A combination of macro and micro factors are understood to have influenced the issuance of JPMorgan&...

  News    13 December 2019

• CET1 ratios eyed

  Disposals, securitisations to protect bank capital

  European bank CET1 ratios have stabilised over recent years, as Basel 3 capital requirements and oth...

  News Analysis    12 December 2019

• Sticking with the programme

  ABSPP hits new high, but total volumes remain low

  Latest figures from the ECB show that its ABSPP holdings are at an all-time high. However, the progr...

  News    12 December 2019

• 2020 vision

  Looking for relative value in European securitisation

  Next year seems likely to present structured finance investors with even greater challenges in the s...

  News Analysis    11 December 2019

• IT solution

  Infrastructure ABS could hold the key to a brighter future for Europe's banks

  The European banking sector is struggling under the burden of shrinking profits and growing costs, y...

  News Analysis    9 December 2019

• SCI Start the Week - 9 December

  A review of securitisation activity over the past seven days

  Transaction of the week NIBC recently priced the first fully-compliant ESG CLO, North Westerly VI,...

  News    9 December 2019

• Mutual agreement

  BPPB SRT debuts

  Further details have emerged about the EIF and Banca Popolare di Puglia e Basilicata’s (BP...

  News    9 December 2019