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 ABS/MBS drifts

    The European ABS/MBS secondary market appears to be drifting along this week. Trading activity con...

    SCIWire    16 February 2017
  • Optimistic outlook for Brazilian ILS

    AlphaCat Managers and Terra Brasis Resseguros have completed a US$5m private catastrophe bond-lite....

    News    15 February 2017
  • US ABS tightens

    US ABS secondary market spreads keep tightening despite continued supply. Appetite for paper in se...

    SCIWire    14 February 2017
  • Credit card issuance on a roll

    American Express has returned to the ABS market after an 18-month absence with a pair of credit card...

    News    14 February 2017
  • Farm forecast is ABS 'credit positive'

    US farm net cash income is predicted to rise 1.8% to US$93.5bn this year, ending three consecutive y...

    News    14 February 2017
  • Euro secondary unchanged

    Activity in the European securitisation secondary market is little changed from that seen in recent...

    SCIWire    14 February 2017
  • SCI Start the Week - 13 February

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

    Pipeline The recent trend of ABS and RMBS dominating pipeline additions continued last week. There...

    News    13 February 2017
  • Positive start for Aussie issuance

    Bank of Queensland last week priced its upsized A$1bn Series 2017-1 REDS Trust prime RMBS, the first...

    News    13 February 2017
  • Regulatory divergence on the cards?

    President Trump continues to assert his desire to roll back regulation imposed after the financial c...

    News    10 February 2017
  • Liquid alternatives firm formed

    Pacific Alternative Asset Management Company (PAAMCO) has entered into a strategic transaction to cr...

    News    10 February 2017
  • Distressed vet heads new credit platform

    BC Partners has recruited Ted Goldthorpe to lead its new credit platform, BC Partners Credit. The fi...

    News    10 February 2017
  • Mariner makes market debut

    Mariner Finance has hit the market with an inaugural US$225m consumer finance securitisation. Dubbed...

    News    10 February 2017
  • Risk retention trends emerging

    Different retention strategies have emerged for US CLOs and CMBS leading up to and since the impleme...

    News Analysis    9 February 2017
  • Leveraging NPL disposals

    UniCredit is expected to use leverage in its planned €17.7bn NPL securitisation, dubbed Pr...

    News Analysis    9 February 2017
  • TGI Friday's taps market

    TGI Friday's is in the market with a US$450m whole business securitisation. Dubbed TGIF Funding, the...

    News    9 February 2017
  • Euro ABS/MBS lighter

    Volumes in the European ABS/MBS secondary market are lighter than last week. "Secondary activity h...

    SCIWire    9 February 2017
  • DOE findings 'mixed' for SLABS

    The US Department of Education's (DOE) determination that more than 800 career-training programmes a...

    News    8 February 2017
  • Punch purchase proceeds

    Patron Capital has purchased 63.31 million of ordinary shares in Punch Taverns at 180 pence per shar...

    News    8 February 2017
  • 'Atypical' ILS issuance tallied

    At 20 transactions, 2016 saw the fewest number of catastrophe bonds brought to the market since 2009...

    News    7 February 2017
  • US ABS rolls on

    Strong volumes and demand for paper is rolling on across the US ABS secondary market. The rally th...

    SCIWire    7 February 2017
  • Individual arbitration for Bethune case

    The US District Court for the Southern District of New York last week ruled in favour of Lending Clu...

    News    7 February 2017