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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.


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    The Structured Credit Interview    30 April 2018
  • SCI Start the Week - 30 April

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

    Upcoming event SCI NPL Securitisation Seminar – 9 May, London SCI’s NPL Secu...

    News    30 April 2018
  • Market moves - 27 April

    Australia FIIG Securities has hired Anne-Marie Hunter-Brown to the role of markets business manage...

    Market moves    27 April 2018
  • Risk-sensitive update for Solvency 2

    The European Commission has launched a consultation on its proposed new risk-sensitive treatment of...

    News    23 April 2018
  • SCI Start the Week - 23 April

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

    Pipeline Auto ABS dominated the pipeline once again last week. A handful of other ABS, as well as C...

    News    23 April 2018
  • Proportional protection reviewed

    EU policymakers are currently negotiating an amendment to Article 234 of the CRR that would allow ba...

    News Analysis    20 April 2018
  • Risk transfer round-up - 20 April

    The capital relief trades market is undergoing a quiet period, following some unusual activity for Q...

    News    20 April 2018
  • Libor transition frailties exposed

    The New York Fed has begun publishing the Secured Overnight Financing Rate (SOFR), a much-touted Lib...

    News    19 April 2018
  • NPL partnership inked

    Intesa Sanpaolo and Intrum have agreed to form a strategic partnership in respect of non-performing...

    News    18 April 2018
  • SCI Start the Week - 16 April

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

    Pipeline The newly-announced transactions remaining in the pipeline at the end of last week compris...

    News    16 April 2018
  • Market moves - 13 April

    Aircraft ABS on watch KBRA has placed the class A, B and C notes of the US$411m Prop 2017-1 ABS o...

    Market moves    13 April 2018
  • Microfinance ABS regroups after defaults

    A number of Indian microfinance loan securitisations recently defaulted, halting a trend of strong p...

    News Analysis    13 April 2018
  • Italian NPL securitisations outpace loan sales

    Non-performing loan securitisation volume has outpaced outright sales in Italy, as banks seek to ben...

    News Analysis    12 April 2018
  • Provisioning impact muted

    The ECB and European Commission have both put forward new rules for minimum loss coverage, which are...

    News Analysis    11 April 2018
  • Financial guarantee ILS debuts

    Build America Mutual Assurance Company (BAM) is in the market with what is believed to be the first...

    News    10 April 2018
  • SCI Start the Week - 9 April

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

    Pipeline A mixed bag of securitisations remained in the pipeline at the end of last week. ABS domin...

    News    9 April 2018
  • Market moves - 6 April

    Europe CSC has hired Robert Berry as chairman of its capital markets group in London and Debra Par...

    Market moves    6 April 2018
  • Market moves - 29 March

    Europe Man Group has hired Simon Finch as cio of credit at Man GLG, its discretionary investment m...

    Market moves    29 March 2018
  • Synthetic NPLs gain traction

    The ECB’s latest non-performing loan provisioning guidelines are expected to trigger incre...

    News Analysis    29 March 2018
  • Euro ABS/MBS busy

    European ABS/MBS secondary market activity has picked up this week. “It’s been...

    SCIWire    29 March 2018
  • Innovative Dutch SRT completed

    Rabobank has completed an innovative Dutch significant risk transfer (SRT) deal with the EIF. The &a...

    News    28 March 2018