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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.


  • Risk transfer round-up - 16 June

    One talking point this week was the EBA's announcement at IMN's Global ABS conference of its intenti...

    News    16 June 2017
  • STS could take a year, but optimism prevails

    The implementation of the STS securitisation framework is unlikely to be completed within a year, ac...

    News Analysis    16 June 2017
  • International investment boost for China

    Shorevest Capital Partners has launched a US$750m fund targeting Chinese non-performing loans. The m...

    News    15 June 2017
  • Treasury reports on regulatory impact

    The US Treasury has issued a first report in a series regarding regulation of the financial system i...

    News    15 June 2017
  • China innovation paves way for securitised products

    US dollar-denominated notes backed by Chinese regional and local government (RLG) bonds have debuted...

    News    15 June 2017
  • Euro ABS/MBS unchanged

    Trading patterns in the European ABS/MBS secondary market remain unchanged. The lack of primary su...

    SCIWire    15 June 2017
  • Prosecutors probe valuations process

    US prosecutors, after years spent studying the sell-side, appear to be turning their attentions to t...

    News Analysis    14 June 2017
  • ABS first for marketplace lender

    Lending Club in in the market with a US$279.38m ABS backed by near-prime unsecured consumer loans or...

    News    13 June 2017
  • Euro secondary flickers

    The European securitisation secondary market is slowly flickering back to life. Overall, all ABS/M...

    SCIWire    13 June 2017
  • Spanish EFSI deal debuts

    The EIF has closed its second European Fund for Strategic Investments (EFSI) deal, providing BBVA wi...

    News    12 June 2017
  • SCI Start the Week - 12 June

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

    Pipeline It was another week of limited pipeline activity, although several CMBS have been announce...

    News    12 June 2017
  • Job swaps round-up - 9 June

    North America Brian Ford has been appointed head of structured finance research at Kroll Bond Rati...

    Job Swaps    9 June 2017
  • Bankruptcy reform opens floodgates

    India's bankruptcy law has attracted increased investment in its non-performing loan market, followi...

    News Analysis    9 June 2017
  • CHOICE Act passes in House

    The US House of Representatives has passed the Financial CHOICE Act. The legislation aims to replace...

    News    9 June 2017
  • MPS solvency plan outlined

    Monte dei Paschi di Siena (MPS) has set out a plan to demonstrate its solvency to regulators, paving...

    News Analysis    8 June 2017
  • European market growth predicted

    European securitisation market participants expect the number of investors to grow and participation...

    News    6 June 2017
  • SCI Start the Week - 5 June

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

    Pipeline With many market participants decamping to Barcelona this week for the industry conference...

    News    5 June 2017
  • Marketplace ABS evolving

    At the upcoming SCI Marketplace Lending Securitisation Seminar in New York on 22 June, panellists wi...

    Talking Point    5 June 2017
  • STS strikes investor and issuer balance

    Further details have emerged over the STS securitisation agreement that was finalised this week (SCI...

    News Analysis    2 June 2017
  • Risk transfer round-up - 2 June

    Dynamic Credit is prepping another Dutch RMBS originated under the ELAN Woninghypotheken brand. Dubb...

    News    2 June 2017
  • MARF listing breaks new ground

    The Mercado Alternativo de Renta Fija (MARF) has admitted a new synthetic securitisation dubbed FT P...

    News    1 June 2017