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.


  • Proving compliance

    Demonstrating significant risk transfer discussed

    How to demonstrate significant risk transfer (SRT) was a hot topic at SCI's Capital Relief Trades Se...

    Talking Point    19 December 2016
  • ABCP performance to remain strong

    European ABCP conduit performance is expected to remain strong next year, reflecting the sound credi...

    News Round-up    16 December 2016
  • Learning by doing

    Issuers weigh capital relief opportunities and challenges

    Capital relief trades, also called risk sharing trades, can provide issuing banks with several advan...

    News Analysis    16 December 2016
  • 'Mixed effects' from rate hikes

    The US Federal Reserve has raised interest rates from 0.25% to a range of 0.50%-0.75%, which will ha...

    News Round-up    15 December 2016
  • ABSPP external managers cut

    The ECB's governing council has decided that the ABSPP should now be fully implemented by national c...

    News Round-up    15 December 2016
  • CNL expectations recalibrated

    Moody's has taken rating actions on four TCF Auto Receivables Owner Trust transactions issued in 201...

    News Round-up    15 December 2016
  • NPL ABS volumes gauged

    Current global non-performing loan assets could translate to potential securitisation volumes of US$...

    News    15 December 2016
  • Euro issuance drops

    €40.2bn of securitised product was issued in Europe in 3Q16, according to AFME's latest se...

    News Round-up    15 December 2016
  • Euro secondary unmoved

    The Fed's announcement yesterday appears to have had little effect so far as the European securitisa...

    SCIWire    15 December 2016
  • Second Salisbury prices wider

    Lloyds has closed a capital relief trade referencing a £2.1bn granular portfolio of UK SME...

    News    14 December 2016
  • Climate recommendations welcomed

    Recommendations for improved quantitative and qualitative climate-related disclosures could increase...

    News Round-up    14 December 2016
  • ILS firm makes exec changes

    ReannaisanceRe has promoted Sean Brosnan to svp, cio, while Aditya Dutt, president, will take on the...

    Job Swaps    14 December 2016
  • LatAm markets 'will rebound'

    Donald Trump's election victory has implications far beyond the US, not least in Mexico, where poten...

    News Round-up    14 December 2016
  • Esoteric ABS forecast issued

    Continued slow economic growth should have a positive effect on US commercial and esoteric ABS secto...

    News Round-up    14 December 2016
  • Mammoth NPL ABS planned

    UniCredit has unveiled plans to divest €17.7bn of NPLs, as part of an effort to deleverage...

    News Round-up    14 December 2016
  • FFELP SLABS trends to continue

    The slow repayment rates of FFELP student loan ABS loans will continue in 2017, says Moody's. Additi...

    News Round-up    13 December 2016
  • Euro appreciation 'SME negative'

    Appreciation of the euro against the pound is slightly credit negative for Italian, Spanish and Belg...

    News Round-up    13 December 2016
  • TSM simplifies management structure

    Tsuyoshi Harigai has become sole ceo at Tokio Solution Management, following the departure of Susan...

    Job Swaps    13 December 2016
  • SME commitment confirmed

    KfW plans to commit €1.3bn to SME securitisation in 2017, including up to €500m...

    News Round-up    13 December 2016
  • Euro ABS/MBS ticks over

    The European ABS/MBS secondary market continues to tick over. As with the previous week it's been...

    SCIWire    13 December 2016
  • Asset manager inks takeover

    Amundi has acquired Pioneer Investments from UniCredit for €3.6bn. As part of the deal, Am...

    Job Swaps    12 December 2016