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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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    Market moves    16 June 2020
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    News    15 June 2020
  • SCI Start the Week - 15 June

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    News    15 June 2020
  • Californian auto loans eyed

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    Market moves    12 June 2020
  • Strategic review

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    News    12 June 2020
  • Addressing inconsistencies

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    News    12 June 2020
  • Risk transfer rebound

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    News Analysis    12 June 2020
  • Euro ABS 'game changer' recommended

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    News    10 June 2020
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    News    10 June 2020
  • Resolve and resilience

    Content sponsored by Ocorian

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    Talking Point    10 June 2020
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    Sector developments and company hires

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    Market moves    9 June 2020
  • Spread compression

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    News    9 June 2020
  • Perfect storm

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    News Analysis    9 June 2020
  • CLO business integrated

    Sector developments and company hires

    CLO business integrated RBC’s US-based CLO management business is being integrated into B...

    Market moves    8 June 2020
  • HAPS ABS debuts

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    News    8 June 2020
  • SCI Start the Week - 8 June

    A review of securitisation activity over the past seven days

    FREE - Capital Relief Trades Virtual Panel - LIVE For a discussion on how the Covid-19 fallout has...

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  • Senators seek TALF expansion

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    Senators seek TALF expansion US Senators Jerry Moran, Martha McSally and Thom Tillis sent a lette...

    Market moves    5 June 2020
  • First steps

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    News Analysis    5 June 2020
  • May payments slump

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    News    5 June 2020
  • Risk transfer round-up - 5 June

    CRT sector developments and deal news

    Sabadell is rumoured to be readying an SME significant risk transfer deal for the second half of the...

    News    5 June 2020