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.


  • DNS debut

    ExteNet preps inaugural securitisation

    The first securitisation backed exclusively by distributed network systems (DNS) assets has hit the...

    News    18 June 2019
  • Risk firm in international ILS hiring spree

    Sector developments and company hires

    BD appointed IHS Markit has appointed Sandrine Markham director, business development for Debtdoma...

    Market moves    17 June 2019
  • Setting standards?

    NPL templates simplified

    Debitos has further developed and simplified the EBA’s NPL templates without altering thei...

    News    17 June 2019
  • Collections eyed

    Distressed investors expect secondary market boost

    Distressed investors are anticipated to become more aggressive in generating cash and overcome the s...

    News Analysis    17 June 2019
  • 2018 best post-crisis year for Australia

    RMBS dominates but unsecured ABS growing

    2018 was the best year for Australian securitisation activity since the financial crisis and while i...

    News    14 June 2019
  • Law firm expands SF expertise

    Company hires and sector developments

    Clean energy firm names cfo Renew Financial has named Mary Kathryn Lynch cfo, having previously se...

    Market moves    14 June 2019
  • Risk transfer round-up - 14 June

    CRT sector developments and deal news

    Standard Chartered is believed to have priced a corporate capital relief trade this week. The bank&a...

    News    14 June 2019
  • Slow but steady

    Sentiment around STS warms, although issuance forecasts remain muted, say Global ABS panellists.

    Extention of the STS regime to more asset classes would benefit the European ABS market, according t...

    News    12 June 2019
  • CLO firm boosts originations expertise

    Company hires and sector developments

    CLO firm boosts originations team Monroe Capital has expanded its direct originations team with th...

    Market moves    12 June 2019
  • Advisor boosts SF expertise

    Sector developments and company hires

    Acquisitions Greensill has acquired receivables securitisation specialist Finacity which will now...

    Market moves    11 June 2019
  • Europe sees 1Q issuance dip

    Sector developments and company hires

    ABS vet nabbed Angelo, Gordon & Co has hired Sunil Kothari as md, responsible for originat...

    Market moves    10 June 2019
  • Livestock first inked

    Sector developments and company hires

    Australian livestock deal debuts StockCo has launched the first securitisation warehouse transacti...

    Market moves    7 June 2019
  • Deleveraging continues

    UniCredit expands NPL ABS programme

    UniCredit has expanded its Sandokan non-performing loan ABS programme. While the transaction is bein...

    News    7 June 2019
  • Risk transfer round-up - 7 June

    CRT sector developments and deal news

    Santander is believed to be readying three SME significant risk transfer transactions, along with a...

    News    7 June 2019
  • 'Significant divergence' in Libor preparations

    Libor transition still 'choice rather than necessity' for some firms

    There are still a “number” of firms in the UK that view the transition from Libo...

    News    5 June 2019
  • New P2P platform rules announced

    Sector developments and company hires

    ABS facility expands Amigo Holdings has increased its securitisation facility to £300m....

    Market moves    5 June 2019
  • Easing up

    European ABS market update

    Activity levels have been high across European ABS/MBS and CLOs of late, but appear to be easing up...

    Market Reports    5 June 2019
  • Agri-linked note prepped

    Company hires and sector developments

    Agri-linked note prepped The African Development Bank has approved a €100m partial credit...

    Market moves    4 June 2019
  • JV announced

    Intrum acquires Piraeus platform

    Intrum is set to purchase Piraeus Bank’s servicing platform, which will be hived-off into...

    News    4 June 2019
  • Bank bulks up commodities expertise

    Company hires and sector developments

    Bank bulks out commodities unit Credit Agricole has hired Aude Sauty de Chalon as directo...

    Market moves    3 June 2019
  • Bank nabs CLO expert

    Company hires and sector developments

    Mizuho has hired Stefan Stefanov as director, Euro CLO specialist and he will report in to Juan-Carl...

    Market moves    31 May 2019