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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.


  • Mariner makes market debut

    Mariner Finance has hit the market with an inaugural US$225m consumer finance securitisation. Dubbed...

    News    10 February 2017
  • Risk retention trends emerging

    Different retention strategies have emerged for US CLOs and CMBS leading up to and since the impleme...

    News Analysis    9 February 2017
  • Leveraging NPL disposals

    UniCredit is expected to use leverage in its planned €17.7bn NPL securitisation, dubbed Pr...

    News Analysis    9 February 2017
  • TGI Friday's taps market

    TGI Friday's is in the market with a US$450m whole business securitisation. Dubbed TGIF Funding, the...

    News    9 February 2017
  • Euro ABS/MBS lighter

    Volumes in the European ABS/MBS secondary market are lighter than last week. "Secondary activity h...

    SCIWire    9 February 2017
  • DOE findings 'mixed' for SLABS

    The US Department of Education's (DOE) determination that more than 800 career-training programmes a...

    News    8 February 2017
  • Punch purchase proceeds

    Patron Capital has purchased 63.31 million of ordinary shares in Punch Taverns at 180 pence per shar...

    News    8 February 2017
  • 'Atypical' ILS issuance tallied

    At 20 transactions, 2016 saw the fewest number of catastrophe bonds brought to the market since 2009...

    News    7 February 2017
  • US ABS rolls on

    Strong volumes and demand for paper is rolling on across the US ABS secondary market. The rally th...

    SCIWire    7 February 2017
  • Individual arbitration for Bethune case

    The US District Court for the Southern District of New York last week ruled in favour of Lending Clu...

    News    7 February 2017
  • Euro secondary patchy

    Activity in the European securitisation secondary market continues to be patchy. Friday saw a rela...

    SCIWire    7 February 2017
  • SCI Start the Week - 6 February

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

    Please noteFrom today, we will be sending out stories as soon as they are published. They will appea...

    News    6 February 2017
  • Canadian auto ABS announced

    Bank of Nova Scotia is in the market with its second Canadian auto receivables ABS, the US$752.68m S...

    News    6 February 2017
  • Horse Capital leading the way?

    The recently-issued Horse Capital I catastrophe bond is further evidence of the ILS market continuin...

    News Analysis    6 February 2017
  • Bridging the gap

    Neutralising NPL valuation discrepancies addressed

    Achieving valuations that satisfy both sellers and investors has been a major sticking point in many...

    News Analysis    3 February 2017
  • APRA consults on reporting revisions

    APRA released the final version of its updated Prudential Standard APS 120 last November (SCI 10 Nov...

    News Round-up    3 February 2017
  • Disclosure recommendations released

    SFIG has published the first edition in a series of papers aimed at supporting the responsible growt...

    News Round-up    3 February 2017
  • OTPP promotes ILS leader

    Ontario Teachers' Pension Plan has promoted Gillian Brown to md for credit, ILS and equity products....

    Job Swaps    2 February 2017
  • Securitisation prospects polled

    Fiscal policy uncertainty is the top concern cited by respondents to Morgan Stanley's 1Q17 global se...

    News    2 February 2017
  • Euro ABS/MBS rising

    Volumes and pricing levels are rising in the European ABS/MBS secondary market this week. "In the...

    SCIWire    2 February 2017
  • FFELP ABS changes tracked

    Of 37 S&P-rated FFELP student loan ABS bonds maturing within the next five years, two appear...

    News Round-up    1 February 2017