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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.


  • Job swaps round-up - 17 March

    EMEA Dentons has formed a securitisation team in Germany by hiring Arne Kluwer,...

    Job Swaps    17 March 2017
  • Risk transfer round-up - 17 March

    Activity continued this week in the capital relief trade space, with Deutsche Bank's CRAFT CLO enter...

    News    17 March 2017
  • Marketplace lending moving ahead

    A number of positive developments have boosted the marketplace lending sector this week. Among them...

    News    16 March 2017
  • Euro secondary trundles on

    The European securitisation secondary market trundles on seemingly unaffected by the ups and downs o...

    SCIWire    16 March 2017
  • Greek servicing shift underway?

    Piraeus Bank has hired Christos Megalou, a former Eurobank director, as its chief executive. The app...

    News Analysis    15 March 2017
  • Swiss auto debut announced

    Multilease is prepping a debut Sfr297m auto lease ABS. Dubbed First Swiss Mobility 2017-1, it is a 3...

    News    15 March 2017
  • European AMC to create 'positive feedback loop'

    Further details have emerged about the EBA's proposed state-funded, pan-EU asset management company...

    News Analysis    14 March 2017
  • Innovative GARC transaction prints

    Intesa Sanpaolo has printed an innovative risk transfer transaction - and the largest to d...

    News    14 March 2017
  • Loan tapes suggest auto trends are 'in line'

    Loan and pool level stratifications in US auto ABS show credit trends in line with economic expansio...

    News    14 March 2017
  • Subprime sponsor risk framework touted

    Gauging sponsor risk in US subprime auto ABS is complicated by the fact that many subprime auto lend...

    News    14 March 2017
  • Euro secondary strengthens

    Tone and levels if not volumes continue to strengthen across the European securitisation secondary m...

    SCIWire    14 March 2017
  • Landmark green SRT introduced

    Mariner Investment Group and Crédit Agricole have collaborated to create the first green ca...

    News Analysis    13 March 2017
  • SCI Start the Week - 13 March

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

    Pipeline New ABS transactions accounted for more than half of last week's pipeline additions. There...

    News    13 March 2017
  • Innovative franchise ABS marketing

    Focus Brands is readying a US$800m whole business securitisation. Focus Brands Funding Series 2017-1...

    News    10 March 2017
  • Risk transfer round-up - 10 March

    Amid the talk circulating the capital relief trade market this week is a rumour that StormHarbour is...

    News    10 March 2017
  • Replacement risk weighing on BWIC volume?

    International ABS BWIC volume totalled €9.7bn in 2016, according to JPMorgan figures. Aver...

    News    9 March 2017
  • Euro secondary simmers

    The European securitisation secondary market is still simmering without yet fully coming to the boil...

    SCIWire    9 March 2017
  • Securitisation revival required

    The European securitisation market needs to be revitalised imminently to drive the continued recover...

    News    7 March 2017
  • Westlake ABS marks 'significant' shift

    Westlake is in the market with its latest ABS, Westlake Automobile Receivables Trust 2017-1 (see SCI...

    News    7 March 2017
  • Euro secondary supply spikes

    This week is scheduled to see a spike in the volume of paper in for the bid across the European secu...

    SCIWire    7 March 2017
  • Aussie card ABS prepped

    Latitude Finance Australia is in the market with a rare Australian credit card ABS. Dubbed Latitude...

    News    6 March 2017