Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London


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.

  • Euro ABS/MBS edges in

    European ABS/MBS secondary spreads continue to edge in. "The market remains strong and well-suppor...

    SCIWire    23 February 2017
  • Ratings expansion outlined

    KBRA has named Jim Nadler ceo, with co-founder Jules Kroll stepping down from the position. The move...

    News    22 February 2017
  • UK government to securitise student loan book

    The UK government is looking to raise £12bn through the structuring and sale of a series of...

    News Analysis    21 February 2017
  • Marketplace deals readied, with innovations

    Kabbage is marketing its first marketplace loan ABS of the year and its second since inception. Mean...

    News    21 February 2017
  • Euro secondary quiet

    It was a quiet start to the week across the European securitisation secondary market thanks primaril...

    SCIWire    21 February 2017
  • Deploying capital

    Chris Redmond, global head of credit at Willis Towers Watson, answers SCI's questions

    Q: How and when did Willis Towers Watson become involved in the securitisation market? A: Willis To...

    The Structured Credit Interview    20 February 2017
  • SCI Start the Week - 20 February

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

    Pipeline There were eight ABS additions to the pipeline last week. These were joined by three RMBS...

    News    20 February 2017
  • Italian mixed NPL portfolio added

    AnaCap Financial Partners is set to acquire a €177m portfolio of Italian performing and no...

    News Analysis    17 February 2017
  • CPACE partnership to leverage ABS

    Renovate America and Greenworks Lending have formed a national partnership to offer commercial PACE...

    News    17 February 2017
  • Job swaps round-up - 17 February

    EuropeWells Fargo has hired Steve Hulett as head of credit and ABS sales EMEA. He was previously co-...

    Job Swaps    17 February 2017
  • Euro ABS/MBS drifts

    The European ABS/MBS secondary market appears to be drifting along this week. Trading activity con...

    SCIWire    16 February 2017
  • Optimistic outlook for Brazilian ILS

    AlphaCat Managers and Terra Brasis Resseguros have completed a US$5m private catastrophe bond-lite....

    News    15 February 2017
  • US ABS tightens

    US ABS secondary market spreads keep tightening despite continued supply. Appetite for paper in se...

    SCIWire    14 February 2017
  • Credit card issuance on a roll

    American Express has returned to the ABS market after an 18-month absence with a pair of credit card...

    News    14 February 2017
  • Farm forecast is ABS 'credit positive'

    US farm net cash income is predicted to rise 1.8% to US$93.5bn this year, ending three consecutive y...

    News    14 February 2017
  • Euro secondary unchanged

    Activity in the European securitisation secondary market is little changed from that seen in recent...

    SCIWire    14 February 2017
  • SCI Start the Week - 13 February

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

    Pipeline The recent trend of ABS and RMBS dominating pipeline additions continued last week. There...

    News    13 February 2017
  • Positive start for Aussie issuance

    Bank of Queensland last week priced its upsized A$1bn Series 2017-1 REDS Trust prime RMBS, the first...

    News    13 February 2017
  • Regulatory divergence on the cards?

    President Trump continues to assert his desire to roll back regulation imposed after the financial c...

    News    10 February 2017
  • Liquid alternatives firm formed

    Pacific Alternative Asset Management Company (PAAMCO) has entered into a strategic transaction to cr...

    News    10 February 2017
  • Distressed vet heads new credit platform

    BC Partners has recruited Ted Goldthorpe to lead its new credit platform, BC Partners Credit. The fi...

    News    10 February 2017