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.


  • 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
  • Euro secondary patchy

    Activity in the European securitisation secondary market continues to be patchy. Friday saw a rela...

    SCIWire    7 February 2017
  • SCI Start the Week - 6 February

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

    Please noteFrom today, we will be sending out stories as soon as they are published. They will appea...

    News    6 February 2017
  • Canadian auto ABS announced

    Bank of Nova Scotia is in the market with its second Canadian auto receivables ABS, the US$752.68m S...

    News    6 February 2017
  • Horse Capital leading the way?

    The recently-issued Horse Capital I catastrophe bond is further evidence of the ILS market continuin...

    News Analysis    6 February 2017
  • Bridging the gap

    Neutralising NPL valuation discrepancies addressed

    Achieving valuations that satisfy both sellers and investors has been a major sticking point in many...

    News Analysis    3 February 2017
  • APRA consults on reporting revisions

    APRA released the final version of its updated Prudential Standard APS 120 last November (SCI 10 Nov...

    News Round-up    3 February 2017
  • Disclosure recommendations released

    SFIG has published the first edition in a series of papers aimed at supporting the responsible growt...

    News Round-up    3 February 2017
  • OTPP promotes ILS leader

    Ontario Teachers' Pension Plan has promoted Gillian Brown to md for credit, ILS and equity products....

    Job Swaps    2 February 2017
  • Securitisation prospects polled

    Fiscal policy uncertainty is the top concern cited by respondents to Morgan Stanley's 1Q17 global se...

    News    2 February 2017
  • Euro ABS/MBS rising

    Volumes and pricing levels are rising in the European ABS/MBS secondary market this week. "In the...

    SCIWire    2 February 2017
  • FFELP ABS changes tracked

    Of 37 S&P-rated FFELP student loan ABS bonds maturing within the next five years, two appear...

    News Round-up    1 February 2017
  • UK ILS consultation launched

    The UK FCA has launched a consultation on proposed changes to its Handbook to reflect the new regula...

    News Round-up    1 February 2017
  • Repurchase plan

    Italian bridge banks complete resolution process

    Nuova Banca delle Marche has completed the NPL repurchases from its securitisations in accordance wi...

    News Analysis    31 January 2017
  • New VW settlement 'credit positive'

    Volkswagen has received final approval from a US federal court for a US$1.2bn cash settlement with t...

    News Round-up    31 January 2017
  • Academy adds structured products pair

    Academy Securities has made two additions to its structured products group, poaching Steve Kenney an...

    Job Swaps    31 January 2017
  • LCP board bolstered

    Ly Lam has been appointed to the management board of Leadenhall Capital Partners as a representative...

    Job Swaps    31 January 2017
  • Euro secondary sluggish

    Activity across the European securitisation secondary market remains sluggish. After a small pick-...

    SCIWire    31 January 2017
  • ILS 'difficult to understand'

    A recent Clear Path Analysis survey of 100 institutional asset allocators finds that 22% are very li...

    News Round-up    30 January 2017
  • SCI Start the Week - 30 January

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

    Pipeline Additions to the pipeline started to pick up pace last week. There were seven ABS and eigh...

    News    30 January 2017
  • Direct lending vet recruited

    HIG Capital has appointed Kenneth Borton as md of WhiteHorse Capital, based in London. He has over 1...

    Job Swaps    30 January 2017