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.
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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