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


  • Euro secondary strengthens

    Tone and levels if not volumes continue to strengthen across the European securitisation secondary m...

    SCIWire    14 March 2017
  • Landmark green SRT introduced

    Mariner Investment Group and Crédit Agricole have collaborated to create the first green ca...

    News Analysis    13 March 2017
  • SCI Start the Week - 13 March

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

    Pipeline New ABS transactions accounted for more than half of last week's pipeline additions. There...

    News    13 March 2017
  • Innovative franchise ABS marketing

    Focus Brands is readying a US$800m whole business securitisation. Focus Brands Funding Series 2017-1...

    News    10 March 2017
  • Risk transfer round-up - 10 March

    Amid the talk circulating the capital relief trade market this week is a rumour that StormHarbour is...

    News    10 March 2017
  • Replacement risk weighing on BWIC volume?

    International ABS BWIC volume totalled €9.7bn in 2016, according to JPMorgan figures. Aver...

    News    9 March 2017
  • Euro secondary simmers

    The European securitisation secondary market is still simmering without yet fully coming to the boil...

    SCIWire    9 March 2017
  • Securitisation revival required

    The European securitisation market needs to be revitalised imminently to drive the continued recover...

    News    7 March 2017
  • Westlake ABS marks 'significant' shift

    Westlake is in the market with its latest ABS, Westlake Automobile Receivables Trust 2017-1 (see SCI...

    News    7 March 2017
  • Euro secondary supply spikes

    This week is scheduled to see a spike in the volume of paper in for the bid across the European secu...

    SCIWire    7 March 2017
  • Aussie card ABS prepped

    Latitude Finance Australia is in the market with a rare Australian credit card ABS. Dubbed Latitude...

    News    6 March 2017
  • SCI Start the Week - 6 March

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

    Pipeline The volume of additions to the pipeline increased a little last week. There were eight new...

    News    6 March 2017
  • Marketplace ABS disparate but stronger

    Investor confidence in marketplace lending appears to have rebounded after a drop-off in 1H16, but t...

    News Analysis    6 March 2017
  • Risk transfer round-up - 3 March

    Intesa Sanpaolo Group has completed a €2.5bn synthetic SME securitisation through its GARC...

    News    3 March 2017
  • German shipping loss provisions on the rise

    Loss provisions against non-performing shipping loans by German banks are on the rise, due to the sl...

    News    2 March 2017
  • Proposed retention metric assessed

    Risk retention regulations in Europe and the US are severely flawed with respect to their key intent...

    News    1 March 2017
  • Carige NPL strategy unveiled

    The Banca Carige board of directors yesterday unanimously approved an updated strategic plan, under...

    News    1 March 2017
  • Court makes Madden usury ruling

    Midland Funding violated New York usury laws by charging interest rates of over 25% to borrowers, th...

    News    1 March 2017
  • Blockchain applications explored

    The Chamber of Digital Commerce and SFIG have formed a strategic partnership focused on advancing th...

    News    28 February 2017
  • Trading expansion underlines optimism

    INTL FCStone's broker-dealer rates group has expanded its trading remit into US agency CMBS and a wi...

    News    28 February 2017
  • Leverage signals maturing CRT market

    The increasing availability of leverage suggests that the risk transfer market is maturing. However,...

    News Analysis    27 February 2017