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.


  • 'Transparency over risk retention' advised

    Securitisation of European SME loans would not necessarily lead to lower credit standards, according...

    News Round-up    3 January 2017
  • Spanish SRT deal completed

    Banco Santander has closed its first Spanish unsecured consumer loan significant risk transfer secur...

    News    23 December 2016
  • SLABS downgrades trump upgrades

    Moody's has this month concluded its review of transactions potentially affected by changes to its F...

    News Round-up    23 December 2016
  • RFC issued on FX risk

    S&P has requested comments on its methodology and assumptions for FX risk in structured fina...

    News Round-up    23 December 2016
  • Fleet ABS reviewed on criteria change

    Moody's has published its updated methodology for rating rental car and rental truck ABS, following...

    News Round-up    23 December 2016
  • Property prospects

    Hiring remains flat, but CMBS up-tick possible

    CMBS could provide a hiring boost in the US in 2017, while structured finance recruitment is likely...

    News Analysis    23 December 2016
  • Punch acquisition agreed

    Heineken UK has agreed a back-to-back deal with Patron Capital vehicle Vine Acquisitions to acquire...

    News Round-up    22 December 2016
  • EIF in UK CRT first

    The EIF has signed a securitisation guarantee deal with RBS, providing capital relief on a £...

    News Round-up    22 December 2016
  • ED appoints new ceo

    The European DataWarehouse (ED) has appointed Christian Thun as ceo, effective from 1 January 2017....

    Job Swaps    21 December 2016
  • Upwardly mobile

    Debut mobile ABS could be first of many

    The first UK mobile handset securitisation closed in November, signalling the beginning of a burgeon...

    News Analysis    21 December 2016
  • State rescue?

    Nationalisation could delay BMPS securitisation

    The Italian parliament has approved €20bn to prop up the country's most fragile banks whil...

    News Analysis    21 December 2016
  • Further FFELP ABS extended

    Navient has amended the transaction agreements for US$170m of ABS bonds backed by FFELP student loan...

    News Round-up    21 December 2016
  • MPL ABS 'compares well' in 2016

    Despite significant turbulence earlier in the year, marketplace lending ABS has maintained steady gr...

    News    20 December 2016
  • Lower credit MPL deal prepped

    SoFi is readying its thirteenth rated student loan securitisation, which is expected to be sold in a...

    News Round-up    19 December 2016
  • Insurance merger agreed

    Fairfax Financial Holdings and Allied World Assurance Company Holdings have entered into a merger ag...

    Job Swaps    19 December 2016
  • SCI Start the Week - 19 December

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

    Pipeline While the pace of pipeline additions has slowed over the last couple of weeks, new deals d...

    News    19 December 2016
  • 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