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


  • Euro ABS/MBS firm

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

    SCIWire    24 November 2016
  • EU proposals support securitisation

    The European Commission has presented a package of reforms to strengthen the resilience of EU banks,...

    News Round-up    23 November 2016
  • Constructive outlook for Euro ABS

    This year has been a year of 'two halves' for the international ABS market, according to JPMorgan Eu...

    News    23 November 2016
  • Below-prime card deal prepped

    Continental Finance Company is in the market with a US ABS transaction securitising below-prime cred...

    News Round-up    23 November 2016
  • Depreciation hits Hertz ABS

    Moody's says that the sharp drop in Hertz Corp's Q3 earnings and reduced full-year guidance are cred...

    News Round-up    23 November 2016
  • On the agenda

    Efforts to tackle European NPLs gather pace

    Efforts by European policymakers to tackle the region's non-performing loan burden appear to be gath...

    News Analysis    23 November 2016
  • Nordic cooperation inked

    SCIO Capital has announced what it terms as "a cooperation" with Nordic-focused institutional invest...

    Job Swaps    22 November 2016
  • Premium pricing

    Above-par issuance techniques explored

    Above-par issuance is becoming a staple of the European primary ABS market. Deals backed by auto loa...

    News Analysis    22 November 2016
  • Basel tensions flagged

    Basel Committee discussions next week may expose divisions between national members and lead to furt...

    News Round-up    21 November 2016
  • Election may yield positive results for SF

    The recent election of a Republican government "should be good for economic growth" and securitisati...

    News    21 November 2016
  • FX issues

    Currency risk hindering Polish mortgage portfolio sales

    Recent speculation that Deutsche Bank could be selling its Polish unit has highlighted the FX issues...

    News Analysis    21 November 2016
  • SCI Start the Week - 21 November

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

    Upcoming SCI eventSCI's latest Capital Relief Trades Seminar, 'Navigating the Cash vs Synthetic Deba...

    News    21 November 2016
  • Container ABS decline persists

    Container ABS volumes have continued to fall in Q3. This follows sluggish demand for containers, whi...

    News    18 November 2016
  • First prime HUNT ABS of the year

    Huntington National Bank is in the market with its first prime retail auto ABS issuance of 2016. The...

    News Round-up    18 November 2016
  • Counterparty replacement warning

    Pending derivative regulations including swap margin posting requirements are creating uncertainties...

    News Round-up    18 November 2016
  • Mutual fund launched

    Palmer Square Capital Management has rolled out its ultra-short duration investment grade strategy i...

    News Round-up    18 November 2016
  • Navient bonds extended

    Navient has amended the transaction agreements for Navient Trust 2014-8, totalling US$469m of FFELP...

    News Round-up    18 November 2016
  • Disruptive opportunities

    Bijesh Amin, co-founder of Indus Valley Partners, discusses the emerging high-frequency lending mode...

    Alternative asset managers see scope for investment opportunities in structured credit resulting fro...

    Talking Point    18 November 2016
  • Virgin handset deal closed

    Royal Bank of Canada has arranged a £125m mobile handset securitisation programme for Virgi...

    News Round-up    17 November 2016
  • Euro tranche debuts

    FirstRand Bank is in the market with its latest UK auto ABS, Turbo Finance 7. The deal, which is pro...

    News Round-up    17 November 2016
  • Euro ABS/MBS unchanged

    There's been little movement in the European ABS/MBS secondary market this week, so far. While sen...

    SCIWire    17 November 2016