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.

  • Negative coupons 'widespread'

    Negative calculated coupons are now widespread among European securitisation tranches, according to...

    News Round-up    1 November 2016
  • Securitisation programme prepped

    Callidus Capital Corp is expected to close its new securitisation programme by 15 November. The tran...

    News Round-up    31 October 2016
  • MOHE discrepancy highlighted

    Fitch has placed the Minnesota Office of Higher Education Supplemental Student Loan Program Revenue...

    News Round-up    31 October 2016
  • SCI Start the Week - 31 October

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

    Pipeline As with the preceding week, last week's additions to the pipeline were relatively modest....

    News    31 October 2016
  • Indian supply nears high

    Indian securitisation volume has jumped to R45,000 crore in the first six months of the current fisc...

    News Round-up    28 October 2016
  • Debut aircraft ABS prepped

    The first securitisation of aircraft managed by Air Lease Corporation (ALC) has been assigned prelim...

    News Round-up    28 October 2016
  • Gas-alternative recoveries analysed

    Continued low gas prices have reduced Americans' appetite for hybrid-electric and all-electric vehic...

    News Round-up    28 October 2016
  • Calypso cat bonds upgraded

    S&P has upgraded the Calypso Capital II class A and class B notes, following the advent of t...

    News Round-up    27 October 2016
  • Timeshare default repurchases climb

    Timeshare ABS default rates are rising and there is a growing trend of default repurchases and subst...

    News    27 October 2016
  • Euro ABS/MBS quiet

    This week has continued to be slow across the European ABS/MBS secondary market. "There's nothing...

    SCIWire    27 October 2016
  • Safe haven?

    Securitised sovereign bonds could bring economic stability

    A European bond comprised of securitised sovereign bonds from multiple European countries could help...

    News Analysis    26 October 2016
  • Landmark SME deals closed

    The EIB has disclosed its recent participation in two European SME securitisations - ROOF...

    News Round-up    25 October 2016
  • APAC ratings affirmed

    Fitch has affirmed the long-term ratings on 161 publicly-rated Asia-Pacific structured finance (SF)...

    News Round-up    25 October 2016
  • Utilisation drop hits container deals

    Two container ABS deals - BEACN 2012-1A and GCA 2013-1A - have been called so far this mon...

    News    24 October 2016
  • Strategic relationship formed

    New Ocean Capital Management, together with its major shareholders XL Group and Stone Point Capital,...

    Job Swaps    24 October 2016
  • SCI Start the Week - 24 October

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

    Pipeline The balance appeared to shift last week, as fewer deals joined the pipeline and far more d...

    News    24 October 2016
  • Ratings complaints prepped

    The US Department of Justice (DOJ) is preparing a civil complaint against Moody's in the US District...

    Job Swaps    24 October 2016
  • Rights issues

    Tax lien ABS growing, but third-party servicers scarce

    The US tax lien ABS sector has grown steadily since 2014 in terms of both issuance and investor inte...

    News Analysis    24 October 2016
  • Arcus makes first addition

    Lloyd's of London syndicate Arcus Syndicate 1856, which is fully capitalised with funds managed by t...

    Job Swaps    21 October 2016
  • China tests 'may lie ahead'

    While China's slowing economic growth has coincided with a slowdown in CLO activity in the country,...

    News    20 October 2016
  • Euro secondary unmoved

    The European securitisation secondary market remains unmoved by continuing strong new issue volumes....

    SCIWire    20 October 2016