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.

  • Unconstrained fund launched

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

    News Round-up    19 January 2017
  • Euro ABS/MBS accelerates

    Activity has accelerated in the European ABS/MBS secondary market after a slow start to the week. ...

    SCIWire    19 January 2017
  • Varied approaches

    Retained risk valuation practices gauged

    The horizontal retention piece of a securitisation could be considered the very definition of a Leve...

    News Analysis    19 January 2017
  • Bar loan ruling 'ABS negative'

    A 2016 ruling by the US Bankruptcy Court for the Eastern District of New York on the dischargeabilit...

    News Round-up    18 January 2017
  • ILS firm launched

    A new alternative asset management firm focused on ILS investments has been founded in Tel Aviv. Dub...

    Job Swaps    18 January 2017
  • Modelling head named

    MSCI has recruited David Zhang as head of securitised products research. In this newly created role,...

    Job Swaps    18 January 2017
  • Chrysler scandal 'ABS negative'

    The US Environmental Protection Agency (EPA) has issued a notice of violation of the Clean Air Act t...

    News Round-up    17 January 2017
  • ILS firm placements head appointed

    XL Catlin has appointed Anne Middleton as global head of placements, ceded reinsurance. Middleton wi...

    Job Swaps    17 January 2017
  • Euro secondary slow

    It's been slow start to the week so far for the European securitisation secondary markets. Partici...

    SCIWire    17 January 2017
  • Weather risk platform introduced

    Speedwell Weather has launched its weatherXchange platform, which aims to help companies access inde...

    News Round-up    16 January 2017
  • Ratings suits settled

    The US Department of Justice, 21 states and the District of Columbia have reached a nearly US$864m s...

    Job Swaps    16 January 2017
  • SCI Start the Week - 16 January

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

    Pipeline There were a few more additions to the pipeline last week. The final count consisted of tw...

    News    16 January 2017
  • Flawed logic

    Regulators' confidence in extra ratings 'misplaced'

    The regulatory drive to require multiple ratings for European structured finance products may not ac...

    News Analysis    13 January 2017
  • Holding steady

    Partnerships, ABS to help marketplace lending stabilise

    The marketplace lending sector endured several tests to its model at the start of 2016, but managed...

    News Analysis    12 January 2017
  • Tradewynd bonds affirmed

    Fitch has affirmed the Tradewynd Re Series 2014-1 class 3A and 3B notes, which are expected to matur...

    News Round-up    11 January 2017
  • Aussie auto outlook negative

    The performance of assets backing Australian auto ABS is negative, while the performance of mortgage...

    News Round-up    11 January 2017
  • Investment chief named

    Semper Capital Management has promoted Zach Cooper from deputy cio to cio, replacing Jay Menozzi, wh...

    Job Swaps    11 January 2017
  • Green SRT emerging

    The final panel at SCI's recent Capital Relief Trades Seminar struck an optimistic note regarding de...

    News    11 January 2017
  • A nebulous concept

    Challenges in defining the cost of capital highlighted

    The challenges in defining the cost of capital were discussed extensively at SCI's recent Capital Re...

    Talking Point    11 January 2017
  • Italian comeback?

    Scope Ratings expects a "slow, unsteady comeback" for public securitisations of Italian non-performi...

    News    10 January 2017
  • Firm nabs credit vet

    Ares Management has hired Scott Graves as a partner in the firm's private equity g...

    Job Swaps    10 January 2017