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.

• New fund for CDS recruit

  Company hires and sector developments

  ABL acquisition Benefit Street Partners affiliate Business Development Corporation of America has a...

  Market moves    28 February 2019

• Debuting duo

  New ILS peril, domicile introduced

  GC Securities has placed a pair of innovative catastrophe bonds. Insurance Australia Group&rsquo...

  News    27 February 2019

• 'Long term solution needed'

  Day three from SFIG Vegas

  The last full day at SFIG Vegas was again abuzz with strong attendance and widespread optimism. On...

  News    27 February 2019

• Lights, camera, securitisation

  Film rights ABS remains attractive to studios

  The increasingly short length of time which films remain in movie theatres for these days may be fru...

  News Analysis    27 February 2019

• Structured finance 'well positioned' for downturn

  Second day at SFIG Vegas sees continued optimism

  Day two at SFIG Vegas saw a bountiful turnout of attendees, all looking to hear the latest on struct...

  News    26 February 2019

• CLO manager shake-up

  Company hires and sector developments

  Derivatives continuity The US CFTC and the Bank of England have issued a joint statement aimed at r...

  Market moves    26 February 2019

• Different strokes

  PACE prepayment volatility on the rise

  A new Morningstar Credit Ratings study reveals increased volatility and a generally accelerating tre...

  News    25 February 2019

• Model behaviour?

  Accuracy of ILS loss predictions hinges on evolving models

  Actual losses in the ILS market may be broadly in line with predictions, but there are sectors with...

  News Analysis    25 February 2019

• A strong start

  Day one at SFIG Vegas

  Moods appear to be running high at the start of SFIG Vegas 2019. Despite being only a half...

  News    25 February 2019

• Maintaining flexibility

  Fiona Walden, vp, credit and financial lines at RenaissanceRe, answers SCI's questions

  Q: How and when did RenaissanceRe became involved in the securitisation market? A: We were set up 2...

  The Structured Credit Interview    22 February 2019

• Restructuring incentive

  Greece unveils mortgage NPL boost

  The Greek government is working on a plan that aims to meet ECB non-performing loan reduction target...

  News Analysis    22 February 2019

• Law firm boosts derivatives capability

  Company hires and sector developments

  CLO firm promotions Churchill has announced the promotion of Mat Linett, md, from deputy head of u...

  Market moves    22 February 2019

• Tough stance

  ESMA insists on private securitisation disclosures

  On 31 January, ESMA published a document that amends its draft regulatory technical standards (RTS)...

  News Analysis    22 February 2019

• CLO partnership launched

  Sector developments and company hires

  CDS trends discussed Mayer Brown has commented on trends in single-name CDS credit event determina...

  Market moves    21 February 2019

• Stand-out performer

  Systematic role for structured credit

  Funds focused on structured credit were, as a whole, stand-out performers in 2018. Of the 50 US stru...

  News Analysis    21 February 2019

• UK paper on the block

  European secondary ABS market update

  The European secondary ABS market has rallied since the beginning of the year. However, activity now...

  Market Reports    21 February 2019

• Law firm nabs SF vet

  Company hires and sector developments

  Europe Latham & Watkins has recruited Jeremiah Wagner as a partner in its finance departme...

  Market moves    20 February 2019

• Lacking clarity

  Libor transition still fraught with challenges

  With only two years to go until Libor is officially phased out in 2021, a number of questio...

  News Analysis    19 February 2019

• CLO firm restructure

  Company hires and sector developments

  Acis restructuring confirmed The US bankruptcy court in Dallas has confirmed Acis Capital Manageme...

  Market moves    19 February 2019

• Secondary focus

  Investors sitting on cash with new European issuance drought

  European structured finance traders continue to focus on the secondary market as they wait for regul...

  News    15 February 2019

• Risk transfer round-up - 15 February

  CRT sector developments and deal news

  The first quarter of this year is expected to see reduced capital relief trade issuance, due to ESMA...

  News    15 February 2019