LOGIN
 

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.


  • 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
  • Japan, China outlooks stable

    Moody's outlook for the performance of assets backing consumer-related ABS and RMBS in Japan is stab...

    News Round-up    10 January 2017
  • Euro secondary sporadic

    Activity remains sporadic across the European securitisation secondary market. ABS/MBS continues t...

    SCIWire    10 January 2017
  • Firm boosts SF sales team

    StormHarbour has hired Christos Danias as md of credit sales for ABS and CLOs. He joins from Cantor...

    Job Swaps    9 January 2017
  • SCI Start the Week - 9 January

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

    Pipeline The first week of the year brought a return to life for the pipeline. There were two new A...

    News    9 January 2017
  • Aeolus acquisition closed

    Elliott Management Corp funds Elliott Associates and Elliott International have acquired a controlli...

    Job Swaps    9 January 2017
  • CMBS head promoted

    DBRS has appointed Christian Aufsatz to a new role as md, head of European structured finance. He wi...

    Job Swaps    9 January 2017
  • Rating agency swipes ABS vet

    Morningstar Credit Ratings has hired Norman Last as director of business development for ABS ratings...

    Job Swaps    9 January 2017
  • Insurer inks rival buyout

    Arch Capital has completed its acquisition of United Guaranty Corporation (UGC) from Americ...

    Job Swaps    6 January 2017
  • Issuance estimates revised upwards

    Most structured finance markets and their credit conditions seem favourable and in some cases ideal...

    News Round-up    5 January 2017
  • Larger cat bonds proliferating

    Nearly US$2bn in catastrophe bonds was issued in 4Q16, according to PCS figures. The size of three o...

    News Round-up    5 January 2017
  • New lows for prime chargeoffs

    US prime credit card ABS chargeoffs reached a new low of 2.33% in December, says Fitch. Retail credi...

    News Round-up    4 January 2017
  • Law firm nabs SF vet

    Norton Rose Fulbright has hired Patrick Dolan as a partner to the firm, joining from Dechert. He foc...

    Job Swaps    4 January 2017
  • 'Basel 4' meeting postponed

    A meeting of the Basel Committee group of central bank governors and heads of supervision (GHOS), or...

    News Round-up    4 January 2017
  • Cash versus synthetic weighed

    Balance sheet securitisations - whereby balance sheet relief is achieved via true sale &am...

    News    4 January 2017
  • Slew of risk transfer trades close

    A handful of capital relief trades closed in late December, including an unusual deal referencing a...

    News    3 January 2017
  • 'Transparency over risk retention' advised

    Securitisation of European SME loans would not necessarily lead to lower credit standards, according...

    News Round-up    3 January 2017
  • Spanish SRT deal completed

    Banco Santander has closed its first Spanish unsecured consumer loan significant risk transfer secur...

    News    23 December 2016
  • SLABS downgrades trump upgrades

    Moody's has this month concluded its review of transactions potentially affected by changes to its F...

    News Round-up    23 December 2016
  • RFC issued on FX risk

    S&P has requested comments on its methodology and assumptions for FX risk in structured fina...

    News Round-up    23 December 2016
  • Fleet ABS reviewed on criteria change

    Moody's has published its updated methodology for rating rental car and rental truck ABS, following...

    News Round-up    23 December 2016