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.

• China aircraft ABS placed publicly

  China Asset Leasing Group Holdings (CALC) has launched China's first ABS denominated and settled in...

  News    4 January 2018

• 'Unique' French windstorm ILS placed

  Willis Towers Watson placed €90m of ILS for Covea Mutual Insurance Group last month in a "...

  News    3 January 2018

• Dynamica makes ABS bow

  Dynamica Retail has issued its first salary assignment and payment delegation loans transaction in I...

  News    3 January 2018

• Job swaps round-up - 22 December

  CDS options clearing LCH's CDSClear has become the first platform to clear credit index options, w...

  Job Swaps    22 December 2017

• Embracing a tactical approach

  David Moffitt, head of tactical investment opportunities at LibreMax Capital, answers SCI's question...

  The Structured Credit Interview    22 December 2017

• SRT investor concerns disclosed

  AFME, in association with the International Association of Credit Portfolio Managers (IACPM), has re...

  News    21 December 2017

• Sharp rise in Italian NPL ABS expected

  Italy is set to see a jump in GACS-eligible securitisations in 2018, potentially totalling ̈́...

  News    21 December 2017

• Landmark shipping SRT completed

  Further details have emerged of Nord LB's landmark shipping significant risk transfer trade (SCI 8 D...

  News    20 December 2017

• IFRS 9 volatility persists

  The Bank of England did not disclose any data on the capital impact of IFRS 9, following the recent...

  News Analysis    20 December 2017

• Esoterics shine in 2017

  The US esoteric ABS market has gone from strength to strength in 2017, as investors gained comfort w...

  News Analysis    20 December 2017

• Broad-based recovery underlined

  The global securitisation markets continued their broad-based recovery in 2017, with total issuance...

  News Analysis    20 December 2017

• PPC benchmark securitisation pending

  Finacity has been awarded the role of securitisation advisor on behalf of Greece's Public Power Corp...

  News    19 December 2017

• SCI Start the Week - 18 December

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

  Pipeline ABS additions to the pipeline finally dropped off last week, but RMBS, CMBS and CLOs conti...

  News    18 December 2017

• Debut Russian RMBS 'just the start'

  VTB Capital has closed an inaugural RMBS under the Russian government-backed AHML programme, which t...

  News Analysis    15 December 2017

• Risk transfer round-up - 15 December

  Barclays has returned to the capital relief trade market with another Colonnade transaction. Colonna...

  News    15 December 2017

• Debut SLABS more of a 'distressed bond'

  After a Brexit-related delay, the UK government has closed Income Contingent Student Loans 1 (2002-2...

  News Analysis    14 December 2017

• Basel 4 proportionality expected

  The Basel Committee last week finalised the long-awaited Basel 4 reforms (SCI 8 December). The propo...

  News Analysis    14 December 2017

• MPL sector shakes off reputational threats

  With continued growth of the marketplace lending ABS sector and repeat issuance from a range of firm...

  News Analysis    13 December 2017

• SCI Start the Week - 11 December

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

  Pipeline A mixed bag of securitisations remained in the pipeline by the end of last week. ABS and C...

  News    11 December 2017

• Risk transfer round-up - 8 December

  Nord LB has this week closed a shipping significant risk transfer transaction dubbed Northvest 2. Th...

  News    8 December 2017

• Confidence boost for synthetic NPL deals

  A recent Ashurst survey notes that securitisation may prove to be the most prevalent method of non-p...

  News Analysis    8 December 2017