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.

• 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

• Oil opportunities

  Royalty-backed future flow ABS to develop

  Oil and gas companies are expected to tap the securitisation market with a new structure. The first...

  News    15 February 2019

• Italian auto firms fined

  Company hires and sector developments

  CLO hire Geoffrey Horton has joined Barclays as vp, CLO and loan strategist in London. He was prev...

  Market moves    15 February 2019

• Private placement

  Unusual tranched securitisation closed

  Fintex Capital has completed a structured finance transaction within its UK real estate lending busi...

  News    14 February 2019

• Bank expands credit derivatives business

  Company hires and sector developments

  Credit trading expansion HSBC has hired Asgar Rahemtulla as a director in credit trading. In his n...

  Market moves    14 February 2019

• Insurance firm expansion

  Sector hires and company developments

  Insurance firm expansion Nassau Re is expanding into additional specialty finance asset c...

  Market moves    12 February 2019

• Juno 2 completed

  BNL closes NPL securitisation

  Banca Nazionale del Lavoro has completed a €968m (GBV) non-performing loan securitisation o...

  News    11 February 2019

• RMAC claim

  Company hires and sector developments

  The RMAC Securities No. 1 Series 2006-NS1, 2006-NS2, 2006-NS3, 2006-NS4 and 2007-NS1 issuers have co...

  Market moves    8 February 2019

• Leviticus closed

  Banco BPM completes NPL securitisation

  Banco BPM has completed a €7.4bn (GBV) securitisation of secured and unsecured Italian non-...

  News    8 February 2019

• European middle market maturing

  US MM sector set to grow following BDC no-action letter

  The middle market securitisation sector is only set to grow in the US, with relaxed regulatory const...

  News Analysis    8 February 2019

• Junior demand

  Credit enhancement concerns raised

  Last year saw more single-B rated auto ABS paper issued in the US than in all previous years combine...

  News    8 February 2019

• Insurer boosts ILS capability

  Sector developments and company hires

  Acquisitions Eldridge Industries has increased its investment in Maranon, now holding a majority o...

  Market moves    6 February 2019

• BoE, ESMA seal no-deal plan

  Company hires and sector developments

  No-deal agreement sealed ESMA has agreed Memoranda of Understanding (MoUs) with the Bank of Englan...

  Market moves    5 February 2019

• SCI Start the week - 4 February

  A review of securitisation activity over the past seven days

  Transaction of the week Bank of Montreal has printed a US and Canadian leveraged loan capital reli...

  News    4 February 2019

• NPL securitisation flourishes

  Extention of GACS to UTPs to fuel further growth?

  European NPL securitisation has flourished over the past two years, reaching a total of €15...

  News Analysis    4 February 2019

• Growing momentum

  Regulatory provisioning boosts shipping NPL prospects

  The European Central Bank’s provisioning push has led to a more positive sentiment around...

  News Analysis    1 February 2019

• Staying strong

  MetLife Investment Management speaks to SCI about the year ahead

  Q: What’s your general outlook for the structured finance sector in 2019? William Morett...

  The Structured Credit Interview    1 February 2019

• Euro ABS deals mooted

  Company hires and sector developments

  European RMBS transactions mandated A pair of European RMBS transactions have been mandated, marki...

  Market moves    31 January 2019

• CLO UCITS launched

  Company hires and sector developments

  CDS publication launched Jochen Felsenheimer, md at XAIA Investment, Wolfgang Klopfer, chairman of...

  Market moves    30 January 2019

• Securitisation swaps book launched

  New publication aims to quench knowledge drought

  Spotting a gap in the market, a team of structured finance veterans have collaborated on a new publi...

  News    30 January 2019

• CMBS tender launched

  Company hires and sector developments

  BUMF tender Greencoat Investments has launched a tender offer for the Business Mortgage Finance 4,...

  Market moves    28 January 2019