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.


  • Flawed logic

    Regulators' confidence in extra ratings 'misplaced'

    The regulatory drive to require multiple ratings for European structured finance products may not ac...

    News Analysis    13 January 2017
  • Holding steady

    Partnerships, ABS to help marketplace lending stabilise

    The marketplace lending sector endured several tests to its model at the start of 2016, but managed...

    News Analysis    12 January 2017
  • Tradewynd bonds affirmed

    Fitch has affirmed the Tradewynd Re Series 2014-1 class 3A and 3B notes, which are expected to matur...

    News Round-up    11 January 2017
  • Aussie auto outlook negative

    The performance of assets backing Australian auto ABS is negative, while the performance of mortgage...

    News Round-up    11 January 2017
  • Investment chief named

    Semper Capital Management has promoted Zach Cooper from deputy cio to cio, replacing Jay Menozzi, wh...

    Job Swaps    11 January 2017
  • Green SRT emerging

    The final panel at SCI's recent Capital Relief Trades Seminar struck an optimistic note regarding de...

    News    11 January 2017
  • A nebulous concept

    Challenges in defining the cost of capital highlighted

    The challenges in defining the cost of capital were discussed extensively at SCI's recent Capital Re...

    Talking Point    11 January 2017
  • Italian comeback?

    Scope Ratings expects a "slow, unsteady comeback" for public securitisations of Italian non-performi...

    News    10 January 2017
  • Firm nabs credit vet

    Ares Management has hired Scott Graves as a partner in the firm's private equity g...

    Job Swaps    10 January 2017
  • Japan, China outlooks stable

    Moody's outlook for the performance of assets backing consumer-related ABS and RMBS in Japan is stab...

    News Round-up    10 January 2017
  • Euro secondary sporadic

    Activity remains sporadic across the European securitisation secondary market. ABS/MBS continues t...

    SCIWire    10 January 2017
  • Firm boosts SF sales team

    StormHarbour has hired Christos Danias as md of credit sales for ABS and CLOs. He joins from Cantor...

    Job Swaps    9 January 2017
  • SCI Start the Week - 9 January

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

    Pipeline The first week of the year brought a return to life for the pipeline. There were two new A...

    News    9 January 2017
  • Aeolus acquisition closed

    Elliott Management Corp funds Elliott Associates and Elliott International have acquired a controlli...

    Job Swaps    9 January 2017
  • CMBS head promoted

    DBRS has appointed Christian Aufsatz to a new role as md, head of European structured finance. He wi...

    Job Swaps    9 January 2017
  • Rating agency swipes ABS vet

    Morningstar Credit Ratings has hired Norman Last as director of business development for ABS ratings...

    Job Swaps    9 January 2017
  • Insurer inks rival buyout

    Arch Capital has completed its acquisition of United Guaranty Corporation (UGC) from Americ...

    Job Swaps    6 January 2017
  • Issuance estimates revised upwards

    Most structured finance markets and their credit conditions seem favourable and in some cases ideal...

    News Round-up    5 January 2017
  • Larger cat bonds proliferating

    Nearly US$2bn in catastrophe bonds was issued in 4Q16, according to PCS figures. The size of three o...

    News Round-up    5 January 2017
  • New lows for prime chargeoffs

    US prime credit card ABS chargeoffs reached a new low of 2.33% in December, says Fitch. Retail credi...

    News Round-up    4 January 2017
  • Law firm nabs SF vet

    Norton Rose Fulbright has hired Patrick Dolan as a partner to the firm, joining from Dechert. He foc...

    Job Swaps    4 January 2017