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.


  • ILS firm makes exec changes

    ReannaisanceRe has promoted Sean Brosnan to svp, cio, while Aditya Dutt, president, will take on the...

    Job Swaps    14 December 2016
  • LatAm markets 'will rebound'

    Donald Trump's election victory has implications far beyond the US, not least in Mexico, where poten...

    News Round-up    14 December 2016
  • Esoteric ABS forecast issued

    Continued slow economic growth should have a positive effect on US commercial and esoteric ABS secto...

    News Round-up    14 December 2016
  • Mammoth NPL ABS planned

    UniCredit has unveiled plans to divest €17.7bn of NPLs, as part of an effort to deleverage...

    News Round-up    14 December 2016
  • FFELP SLABS trends to continue

    The slow repayment rates of FFELP student loan ABS loans will continue in 2017, says Moody's. Additi...

    News Round-up    13 December 2016
  • Euro appreciation 'SME negative'

    Appreciation of the euro against the pound is slightly credit negative for Italian, Spanish and Belg...

    News Round-up    13 December 2016
  • TSM simplifies management structure

    Tsuyoshi Harigai has become sole ceo at Tokio Solution Management, following the departure of Susan...

    Job Swaps    13 December 2016
  • SME commitment confirmed

    KfW plans to commit €1.3bn to SME securitisation in 2017, including up to €500m...

    News Round-up    13 December 2016
  • Euro ABS/MBS ticks over

    The European ABS/MBS secondary market continues to tick over. As with the previous week it's been...

    SCIWire    13 December 2016
  • Asset manager inks takeover

    Amundi has acquired Pioneer Investments from UniCredit for €3.6bn. As part of the deal, Am...

    Job Swaps    12 December 2016
  • UK SLABS ratings suspended

    S&P has suspended its credit ratings on Honours series 2's class A1, A2, B, C and D notes. T...

    News Round-up    12 December 2016
  • Firm hires aviation pro

    Cross Ocean Partners has hired Brandt Wilson as partner and head of asset investment strategies.&...

    Job Swaps    12 December 2016
  • Asset finance firm bolstered

    Norton Folgate has been rebranded as Amicus Asset Finance. Concurrently, the firm has recruited Jere...

    Job Swaps    12 December 2016
  • Trust services to be sold off

    Capita is set to dispose of the majority of its Capita Asset Services (CAS) division and a small num...

    Job Swaps    12 December 2016
  • SCI Start the Week - 12 December

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

    PipelinePipeline entrants were mixed last week. Three ABS, four CMBS and two RMBS were newly announc...

    News    12 December 2016
  • SLABS to see strong performance

    A major theme in the US private student loan market in 2017 will be the continued origination and se...

    News Round-up    9 December 2016
  • Vertical retention upped

    The European Parliament's Economic and Monetary Affairs Committee (ECON) yesterday adopted the Europ...

    News Round-up    9 December 2016
  • Equipment, card ABS 'to stay strong'

    Both US equipment and credit card ABS will remain strong in 2017, says Moody's. Issuance should be a...

    News Round-up    8 December 2016
  • Private credit strategies targeted

    Eaton Partners has formed a distinct team that will work with and raise capital for unique private c...

    Job Swaps    8 December 2016
  • Brexit to affect auto ABS

    The UK's decision to leave the EU will impact UK auto ABS, although DBRS expects ratings to remain r...

    News Round-up    8 December 2016
  • Proposals 'counter to ABS revival'

    New European Parliament proposals do not go far enough to help revive securitisation in Eur...

    News Round-up    8 December 2016