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.

• 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

• Minerva closed

  Innovative guarantee completed

  Banca Nazionale Del Lavoro has closed a €100m mezzanine guarantee with the EIF. Dubbed Mine...

  News    25 January 2019

• New ILS unit launched

  Sector developments and company hires

  ABS outfit launched US Bancorp has launched a new ABS lending business, providing non-recourse com...

  Market moves    25 January 2019

• Risk transfer round-up - 25 January

  CRT sector developments and deal news

  Deutsche Bank issued a leveraged loan capital relief trade in December among a flurry of risk transf...

  News    25 January 2019

• CLOs retain top ranking

  Quarterly SCI data update

  CLOs remained the top asset class in terms of deal count for European and US new issuance in 4Q18, a...

  News Analysis    24 January 2019

• Alt investor boosts global presence

  Sector developments and company hires

  Europe Palamon has hired Aqib Kadar as director of tax and structured finance. Kadar was previousl...

  Market moves    24 January 2019

• Slow start

  European ABS and CLO market update

  The European ABS market is experiencing its “slowest start to a year since 2011”...

  Market Reports    23 January 2019

• Two depart at ILS firm

  Sector developments and company hires

  Europe M&G Investments has appointed Vincent Charles-Gervais as portfolio manager within i...

  Market moves    22 January 2019

• Chinese equipment lease ABS prepped

  Transaction features several firsts for experienced issuer

  Far East Horizon Corporation (FEH) is marketing a CNY1.865bn securitisation backed by equipment leas...

  News    22 January 2019

• Pepper up

  European ABS market update

  European secondary market activity is picking up, following a quiet start to the year. However, the...

  Market Reports    22 January 2019

• Latest SCI podcast available

  SCI podcast episode four is now live

  SCI’s latest podcast is now live. This month the team round up asset class performance fro...

  News    21 January 2019

• CRT growth continues

  Tighter pricing trend points to expanding market

  The year 2018 saw a flurry of capital relief trades referencing various asset classes that were pric...

  News Analysis    18 January 2019

• Innovative ILS transaction launched

  Sector developments and company hires

  Auto ILS closed AlphaCat Managers has securitised a non-standard passenger auto insurance portfoli...

  Market moves    18 January 2019

• Redemption relief?

  RMBS calls could boost European supply

  The European securitisation pipeline remains all but empty as regulatory uncertainty continues to ha...

  News Analysis    18 January 2019

• Global investor promotes duo

  Sector development and company hires

  Europe Martin Munte has been named director, investor relations at CVC Credit Partners in London....

  Market moves    17 January 2019

• Risk retention for Japan?

  Sector developments and company hires

  ILS Sarah Demerling has joined Walkers Bermuda as a partner in the firm's corporate, finan...

  Market moves    16 January 2019

• STS-compliant ABS issuance to be 'higher than expected'

  Lack of certainty continues around areas of Securitisation Regulation

  The EU Securitisation Regulation came into force as of 1 January this year, despite several parts of...

  News Analysis    16 January 2019

• Agency launches new Euro office

  Company hires and sector developments

  Europe Alantra has hired James Fadel as md. He was previously head of structured finance advisory...

  Market moves    14 January 2019

• SCI Start the Week - 14 January

  A review of securitisation activity over the past seven days

  Transaction of the week BBVA has completed an innovative transaction that synchronises credit event...

  News    14 January 2019

• Risk transfer round-up - 11 January

  CRT sector developments and deal news

  The fourth quarter of 2018 saw a slew of risk transfer deals typical of year-end issuance (SCI 21 De...

  News    11 January 2019

• Credit events synchronised

  BBVA completes innovative IFRS 9 hedge

  BBVA has completed an innovative transaction that synchronises credit events with IFRS 9 lifetime ex...

  News Analysis    11 January 2019