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.

• 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