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.

  • 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
  • PACE residuals deal prepped

    Renovate America is in the market with an usual PACE securitisation. Dubbed HERO Residual Funding 20...

    News Round-up    2 December 2016
  • New entrants to boost issuance

    Moody's anticipates a slight increase in issuance of European ABS and RMBS next year. The agency exp...

    News Round-up    2 December 2016
  • Charge-off record reversed

    US credit card ABS 60-plus day delinquencies and charge-offs are up slightly from previous record lo...

    News Round-up    1 December 2016
  • Euro ABS/MBS distracted

    New deals are continuing to keep focus way from the European ABS/MBS secondary market. "Primary is...

    SCIWire    1 December 2016
  • Tip of the iceberg?

    ABS impact investment to rise as green bonds gain traction

    Securitisation is increasingly recognised as providing the 'double bottom-line' benefits sought by i...

    News Analysis    30 November 2016
  • Trustee service expands in Korea

    BNY Mellon has been granted a full All Asset Trust License status in Korea. The move&nb...

    Job Swaps    30 November 2016
  • Liquidity stress anticipated

    Fitch believes that demonetisation could lead to a short-term liquidity stress in Indian auto ABS tr...

    News Round-up    30 November 2016
  • EMEA SME ABS trends to continue

    EMEA SME ABS market activity and deal characteristics will be driven by a broad array of originators...

    News Round-up    30 November 2016
  • CRR boost?

    The European Commission's CRR 2 reforms, which it unveiled last week, include proposals that appear...

    News    29 November 2016
  • Euro secondary surge

    There is a surge in activity throughout the European securitisation secondary market. Activity has...

    SCIWire    29 November 2016
  • Good credit quality anticipated

    Moody's expects the performance of the Indian, Korean and Singaporean securitisation markets to be s...

    News Round-up    28 November 2016
  • Fixed income firm nabs sales duo

    Alcentra has made two new hires to its business development team in London. Nicholas Pont joins as m...

    Job Swaps    28 November 2016
  • Liquidity facility reduction agreed

    Unique Pub Finance Co last week canceled £37m out of the £190m liquidity facility...

    News Round-up    28 November 2016
  • Issuance landscape surveyed

    Central bank quantitative easing measures will influence EMEA ABS and RMBS the most, according to ha...

    News Round-up    28 November 2016
  • SCI Start the Week - 28 November

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

    Pipeline With the week dominated by Thanksgiving, there were few pipeline additions. These amounted...

    News    28 November 2016
  • Euro risk retention 'agreement reached'

    The European Parliament appears to have reached a consensus on its approach to securitisation. The M...

    News    25 November 2016
  • Car trouble?

    Auto loan deterioration affects ABS value

    US auto ABS issuance is booming, but collateral continues to deteriorate and delinquencies have clim...

    News Analysis    25 November 2016
  • Valuation role for structured credit pro

    Alan Packman has joined Moody's Analytics in London as a product specialist in its structured analyt...

    Job Swaps    25 November 2016
  • Draft ILS regulations released

    As part of the Chancellor's Autumn Statement, the UK government has launched a consultation setting...

    News    24 November 2016
  • Euro ABS/MBS firm

    Tone remains firm in the European ABS/MBS secondary market albeit on low volumes. Inevitably with...

    SCIWire    24 November 2016