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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 'difficult to understand'

    A recent Clear Path Analysis survey of 100 institutional asset allocators finds that 22% are very li...

    News Round-up    30 January 2017
  • SCI Start the Week - 30 January

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

    Pipeline Additions to the pipeline started to pick up pace last week. There were seven ABS and eigh...

    News    30 January 2017
  • Direct lending vet recruited

    HIG Capital has appointed Kenneth Borton as md of WhiteHorse Capital, based in London. He has over 1...

    Job Swaps    30 January 2017
  • New worlds

    South American securitisation markets opening up

    The Latin American structured finance markets are changing, with significant shifts in Argentina and...

    News Analysis    30 January 2017
  • Placed issuance up

    €59bn of securitised product was issued in Europe in 4Q16, an increase of 26.9% from 3Q16...

    News Round-up    27 January 2017
  • High prepays for SBOLT

    Moody's reports that the performance of Small Business Origination Loan Trust 2016-1, the first Euro...

    News Round-up    27 January 2017
  • Demonetisation hits collections

    Demonetisation appears to have had a negative impact on Indian auto loan repayments, based on collec...

    News Round-up    27 January 2017
  • NZ group turns to ABS

    New Zealand's largest vehicle seller, Turners, has established a NZ$150m securitisation programme th...

    News Round-up    25 January 2017
  • Heavy burden

    Student loan servicing under the spotlight

    Average US student debt levels have now swelled to a record US$30,000 plus, sparking concern that th...

    News Analysis    25 January 2017
  • Aligned interests

    US funds continue Spanish NPL storm

    US funds continue to storm the Spanish NPL market for investment opportunities. They appear to be ca...

    News Analysis    24 January 2017
  • Autos lead US ABS

    The auto sector is currently leading the way in the US ABS secondary market. Overall, ABS secondar...

    SCIWire    24 January 2017
  • Euro secondary still seeks supply

    Demand continues to outstrip supply in the European securitisation secondary market. Tone remains...

    SCIWire    24 January 2017
  • WestLB spin-off acquired

    Mount Street is set to acquire EAA Portfolio Advisors (EPA) from Erste Abwicklungsanstalt (EAA), whi...

    Job Swaps    23 January 2017
  • SCI Start the Week - 23 January

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

    Pipeline There was a clear skew towards auto ABS additions for the pipeline last week. As...

    News    23 January 2017
  • Distressed team beefs up

    Michael Carley has joined BTIG as a director of fixed income credit, focused on illiquid markets acr...

    Job Swaps    23 January 2017
  • CRE lawyer promoted

    Sutherland has elected three new partners and nine new counsel to the firm. One of the new counsel -...

    Job Swaps    20 January 2017
  • Cautious optimism

    Secondary CRT market gaining momentum

    The secondary market for capital relief trades has been growing alongside issuance of syndicated dea...

    News Analysis    20 January 2017
  • Tobacco update affects ratings

    Moody's has updated its methodology for rating tobacco settlement revenue securitisations. The metho...

    News Round-up    20 January 2017
  • MS names structured credit chief

    Morgan Stanley is moving one of its EMEA capital markets co-heads into Morgan Stanley Investment Man...

    Job Swaps    20 January 2017
  • Card ABS volume to grow

    Credit card debt in the US is growing while credit card utilisation rates are trending lower, sugges...

    News Round-up    19 January 2017
  • Unconstrained fund launched

    Dolfin has launched the Dolfin Unconstrained Credit Strategy, which targets consistently positive re...

    News Round-up    19 January 2017