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


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

    Pipeline Additions to the pipeline last week were fairly steady compared to the week before, as the...

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    News Analysis    27 February 2017
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    Several risk transfer securitisations are understood to have entered the pipeline this past week. ...

    News    24 February 2017
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    Elix Capital has closed its debut securitisation of turpoprop aircraft at a time when investors are...

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    SCIWire    23 February 2017
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    News    22 February 2017
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    The UK government is looking to raise £12bn through the structuring and sale of a series of...

    News Analysis    21 February 2017
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    SCIWire    21 February 2017
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    Chris Redmond, global head of credit at Willis Towers Watson, answers SCI's questions

    Q: How and when did Willis Towers Watson become involved in the securitisation market? A: Willis To...

    The Structured Credit Interview    20 February 2017
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    A look at the major activity in structured finance over the past seven days.

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    News    20 February 2017
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