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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.


  • Start-up launches to solve structured product problems

    Banks remain too big to fail and there is still opacity surrounding securitisation and structured pr...

    Provider Profile    7 June 2018
  • Deal 'will happen' despite political risk

    Banco BPM has announced the transferral of a €5.1bn gross nominal value (GNV) portfolio of...

    News Analysis    6 June 2018
  • Chinese issuance growing strongly

    Chinese securitisation issuance surged to a record high in 2017 but significant challenges remain. O...

    News Analysis    4 June 2018
  • SCI Start the Week - 4 June

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

    Pipeline ABS and RMBS made up the majority of the transactions remaining in the pipeline at the end...

    News    4 June 2018
  • Consultant activity surveyed

    Investment consultants for long-term investors such as pension funds haven’t been as activ...

    News Analysis    1 June 2018
  • Euro mortgage market heating up

    A thriving European mortgage market is attracting foreign investors seeking to capitalise on the low...

    Provider Profile    1 June 2018
  • Market moves - 1 June

    BTL RMBS planned UK Mortgages and TwentyFour Asset Management have acquired a high-quality pool o...

    Market moves    1 June 2018
  • RRBs on the rise?

    Signs of an uptick in the US rate reduction bond (RRB) market are emerging, albeit the sector remain...

    News Analysis    30 May 2018
  • GACS issuance surge expected

    Investor appetite for GACS non-performing loan securitisations will be tested this year, as a strong...

    News Analysis    29 May 2018
  • NPL financing hurdle highlighted

    Financing non-performing loan resolutions remains the missing piece in efforts to tackle Europe&...

    News Analysis    25 May 2018
  • Risk transfer round-up - 25 May

    Standard Chartered is expected to roll over two existing trade finance capital relief trades in 2H18...

    News    25 May 2018
  • Landmark NPL securitisation closed

    Banca Monte dei Paschi di Siena’s landmark non-performing loan securitisation, Si...

    News Analysis    25 May 2018
  • Market moves - 25 May

    Analytics acquisition IHS Markit has signed a definitive agreement to acquire Ipreo for US$1.855bn...

    Market moves    25 May 2018
  • SCI Start the Week - 21 May

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

    Pipeline The transactions remaining in the pipeline by the end of last week were spread fairly even...

    News    21 May 2018
  • Securitisation 'right tool' for NPL disposals

    Participants at a recent SCI seminar on non-performing loan securitisation were optimistic about the...

    Talking Point    18 May 2018
  • SCI Start the Week - 14 May

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

    Pipeline ABS accounted for the majority of the deals remaining in the pipeline at the end of last...

    News    14 May 2018
  • IFRS 9 first-time impact gauged

    Banks have begun releasing their first quarterly results for this year, with the reports suggesting...

    News Analysis    14 May 2018
  • BMPS deal taps ReoCo

    Banca Monte dei Paschi di Siena (BMPS) has completed its much-anticipated non-performing loan securi...

    News    11 May 2018
  • NPL recovery boost expected

    Greek systemic banks are teaming up to create a platform that will manage and settle mortgage and re...

    News Analysis    4 May 2018
  • Market moves - 4 May

    Acquisitions Five Oaks Investment Corporation has acquired 100% of the equity interests of Hunt CM...

    Market moves    4 May 2018
  • Investor-led start-up targets capital market niches

    Travis Miller, co-founder and joint md of iPartners, answers SCI’s questions Q: How did...

    The Structured Credit Interview    30 April 2018