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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.


  • Atlante momentum waning?

    Italian bank rescue fund Atlante II has completed the purchase of its debut €2.2bn non-per...

    News    17 May 2017
  • Premium finance debut ABS lined up

    Premium Credit is bringing to market is first term ABS, an unusual deal backed by premium finance co...

    News    16 May 2017
  • IFRS 9 to spur 'underperforming' loan sales

    The implementation of IFRS 9 is expected to increase provisioning for a new loan category dubbed 'un...

    News Analysis    15 May 2017
  • SCI Start the Week - 15 May

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

    Pipeline There was a bit more variety to the pipeline's additions last week, although ABS once agai...

    News    15 May 2017
  • Risk transfer round-up - 12 May

    Risk transfer activity has rebounded this week, with the EIF's landmark Spanish portfolio guarantee....

    News    12 May 2017
  • Job swaps round-up - 12 May

    Amicus briefs The LSTA has joined The Clearing House and the American Bankers Association to file...

    Job Swaps    12 May 2017
  • Landmark portfolio guarantee inked

    The EIF has agreed to guarantee 50% of a €5.52bn Spanish SME credit portfolio originated b...

    News Analysis    12 May 2017
  • Insurer hits mark with first cat bond

    Palomar Specialty Insurance Company has successfully closed its first cat bond obtaining protection...

    News    11 May 2017
  • Five Guys taps ABS appetite

    Five Guys Enterprises has become the latest company to bring a whole business securitisation. The US...

    News    11 May 2017
  • Channel Tunnel refinancing underway

    Groupe Eurotunnel is set to refinance its Channel Link Enterprises Finance (CLEF) whole business sec...

    News    10 May 2017
  • Container ABS wave continues

    Textainer Equipment Management is in the market with the latest container ABS (see SCI's deal pipeli...

    News    10 May 2017
  • US ABS firm

    Tone and spreads remain firm in the US ABS secondary market though activity has dipped. Flow and B...

    SCIWire    9 May 2017
  • Euro ABS/MBS quiet

    Despite the resolution of the French presidential election the European ABS/MBS secondary market rem...

    SCIWire    9 May 2017
  • SCI Start the Week - 8 May

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

    Pipeline ABS names dominated the list of pipeline additions last week. There were eight new ABS add...

    News    8 May 2017
  • Job swaps round-up - 5 May

    North America Hunton & Williams has hired John Dedyo as corporate partner to its New York...

    Job Swaps    5 May 2017
  • ILS firm seeks P2P platform funding

    Sequant Re is looking to raise capital through a peer-to-peer platform which connects investors dire...

    News    5 May 2017
  • Risk transfer round-up - 5 May

    Capital relief trade activity has been relatively subdued this week. However, sources report that th...

    News    5 May 2017
  • Alitalia exposure examined

    Italy's troubled flagship airline Alitalia has been placed under special administration. Should the...

    News    4 May 2017
  • Irish NPL wave expected

    Allied Irish Bank last month sold €400m gross book value of non-performing buy-to-let loan...

    News Analysis    3 May 2017
  • Credit card charge-offs ramp up

    Several US credit card banks have reported higher-than-expected net charge-off rates on their card p...

    News    3 May 2017
  • Chinese NPL ABS to expand

    The Chinese government is set to allow some mid-sized banks to issue non-performing loan ABS this ye...

    News    2 May 2017