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.


  • CLO director nabbed

    Company hires and sector developments

    Europe Hermes Investment Management has hired Kevin Roche as a director for private debt...

    Market moves    17 May 2019
  • US student loan sector 'in crisis'

    Servicers 'unlikely' to handle big rise in distressed loans

    The US student loan ABS sector continues to be dominated by deals backed by FFELP...

    News Analysis    17 May 2019
  • Promising prospect

    Synthetic UTPs contemplated as IFRS 9 hedge

    Synthetic securitisations referencing unlikely-to-pay loans are a more promising prospect than synth...

    News Analysis    17 May 2019
  • Seeking refuge

    NPL securitisation disclosed

    Hoist Finance has confirmed in its latest 2019 interim report that it will securitise part of its no...

    News Analysis    16 May 2019
  • CMBS sees prompt prepayment

    Company hires and sector developments

    Auction platform Mortgage Capital Trading has launched Trade Auction Manager (TAM) to enable more...

    Market moves    16 May 2019
  • Risk transfer round-up - 16 May

    CRT sector developments and deal news

    Caixabank has completed a synthetic securitisation of Spanish SMEs with the European Investment Fund...

    News    16 May 2019
  • Senior appointments abound

    Company hires and sector developments

    Acquisition Priority Income Fund has completed its acquisition of Stira Alcentra Global Credit Fun...

    Market moves    14 May 2019
  • SCI Start the week - 13 May

    A review of securitisation activity over the past seven days

    Transaction of the week Last week saw an unusual Irish CMBS hit the European pipeline, from debut...

    News    13 May 2019
  • Irish debut CMBS prepped

    Flurry of European ABS hit pipeline

    A rush of European securitisations have hit the pipeline, across asset classes and jurisdictions. Th...

    News    10 May 2019
  • Energy expert nabbed

    Company hires and sector developments

    Energy expert nabbed Energy Estate has hired Christian Krebs as one of the leaders in&...

    Market moves    8 May 2019
  • NPL securitisation inked

    Portuguese issuer returns to market

    Caixa Montepio Geral has returned to the market with its second NPL securitisation, dubbed Gaia Fina...

    News    8 May 2019
  • STS 'not enough' for European ABS revival

    Securitisation 'needs to be used more' as funding tool

    At the start of last year, BNP Paribas Asset Management hired Michel Fryszman as its new he...

    News Analysis    3 May 2019
  • NPL acquisition completed

    Hoist Finance purchases Getback portfolio

    Hoist Finance has acquired a PLN400m non-performing loan portfolio from Polish servicer Getback. Ove...

    News    3 May 2019
  • Challenges persist

    Structuring issues put shipping SRTs on hold

    Capital relief trades referencing shipping loans have long been discussed and planned by a small num...

    News Analysis    3 May 2019
  • Rating agency appoints new SF head

    Company hires and sector developments

    Bank bulks up Macquarie has appointed Carolyn Porretta md, structured finance and real estate, bas...

    Market moves    3 May 2019
  • Servicing consolidation

    Subprime auto portfolio transfers gain traction

    US subprime auto loan portfolio sales activity is expected to increase as further lenders withdraw f...

    News Analysis    3 May 2019
  • Line-up finalised

    NPL event includes UTP workshop

    The line-up for SCI’s 2nd Annual NPL Securitisation Seminar on 13 May has been finalised....

    News    3 May 2019
  • Risk transfer round-up - 3 May

    CRT sector developments and deal news

    Santander is rumoured to be readying an SME transaction from its Magdalena programme for 2Q19.The tr...

    News    3 May 2019
  • First SOFR-indexed MBS tranche inked

    Sector developments and company hires

    Claims predictability to improve? The Florida legislature last month passed a bill to reform the re...

    Market moves    2 May 2019
  • SFR issuer prepays class F notes

    Sector developments and company hires

    EMEA Alantra has reinforced its portfolio advisory capabilities with the addition of six senior p...

    Market moves    30 April 2019
  • Risk transfer round-up - 26 April

    CRT sector developments and deal news

    The second quarter of this year is expected to be more active in terms of capital relief trade issua...

    News    26 April 2019