Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London


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.

  • 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
  • Pairing up

    ABS, bank partnerships to lift marketplace lending

    Marketplace lending and fintech will play an increasing role in the future of the securities market,...

    News Analysis    8 December 2016
  • Euro secondary keeps positive

    Tone across the European securitisation secondary market continues to be positive. After a quiet s...

    SCIWire    8 December 2016
  • Wildfire affects timeshare ABS

    Westgate Resorts has reported damage at its Westgate Smoky Mountain Resort in Gatlinburg, Tennessee,...

    News Round-up    7 December 2016
  • Aircraft ABS programme planned

    Floreat Group is readying a securitisation programme focused on the aviation sector, with the aim of...

    News Round-up    7 December 2016
  • Mortgage-linked ABS prepped

    The £292.4m Towd Point Mortgage Funding 2016-Granite 3 has hit the market. The transaction...

    News Round-up    7 December 2016
  • Arrow names new chief

    Securitisation veteran Lee Rochford will replace Tom Drury as group ceo and board director of Arrow...

    Job Swaps    7 December 2016
  • Precious metals ABS prepped

    Monex Deposit Company (MDC) is in the market with a rare public securitisation secured by precious m...

    News Round-up    6 December 2016
  • Arrow enters Italian market

    Arrow Global Group is entering the Italian market with the acquisition of Zenith Service. It will pu...

    Job Swaps    6 December 2016
  • North American outlook 'stable'

    Stability will likely remain for structured finance ratings in the US and Canada next year,...

    News Round-up    6 December 2016
  • LatAm outlook 'stable'

    Latin American structured finance transactions should enjoy a stable credit environment next year, d...

    News Round-up    6 December 2016
  • Reputation management

    MPL ABS growth likely, subject to strong macroeconomics

    Marketplace loan ABS performance will generally remain stable into 2017, with loan originations and...

    News Analysis    6 December 2016
  • Euro secondary quiet

    The European securitisation secondary market has had another quiet start to the week. Italy was un...

    SCIWire    6 December 2016
  • Chinese CLO outlook 'negative'

    The performance of assets backing Chinese auto loan ABS and RMBS will be stable throughout 2017, but...

    News Round-up    5 December 2016
  • Ratings watch follows classification error

    S&P has placed the ratings of CAN Capital Funding Series 2014-1's class A and B notes on cre...

    News Round-up    5 December 2016
  • Organisational changes confirmed

    Scope Group's holding company has transitioned into Scope SE & Co KGaA. At the same time, th...

    Job Swaps    5 December 2016
  • SCI Start the Week - 5 December

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

    SCI content this week is sponsored by BNY Mellon. All content this week is being made available free...

    News    5 December 2016
  • Noteholder committee mooted

    A number of investors in the UK student loan ABS, Honours, indicated during a recent noteholder conf...

    News Round-up    5 December 2016
  • ILS firm swaps chiefs

    Michael Krefta will assume the role of ceo for Hiscox Bermuda as of 1 August 2017. This follows the...

    Job Swaps    2 December 2016
  • Acquisition prompts amendments

    Structural amendments have been implemented in relation to Dutch auto lease ABS Highway 2015-I, foll...

    News Round-up    2 December 2016
  • MPL disclosure paper published

    SFIG has released a green paper on the responsible growth of securitisation in the marketplace lendi...

    News Round-up    2 December 2016