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.

  • Conn's re-offers notes

    Conn's has entered into an agreement to sell the previously retained class C notes issued as part of...

    News Round-up    12 October 2016
  • Excess baggage

    Reg AB 2 loan-level disclosures weighed

    Loan-level disclosure requirements under Regulation AB 2 are expected to have a limited impact on AB...

    News Analysis    12 October 2016
  • Law firm poaches ILS pro

    Dentons has hired John Sarchio as partner in its insurance regulatory practice. He will advise on in...

    Job Swaps    11 October 2016
  • Chinese slowdown APAC's 'biggest issue'

    The slowing Chinese economy is the major issue for the Asia Pacific securitisation and covered bond...

    News Round-up    11 October 2016
  • European issuance tracked

    €40.2bn of securitised product was issued in Europe in 3Q16, according to AFME's latest da...

    News Round-up    11 October 2016
  • Securitisation revival supported

    The European Parliament is due to discuss proposed amendments to the draft regulation for simple, tr...

    News Round-up    11 October 2016
  • Euro secondary solid

    The European securitisation secondary market remains solid in the face of strong supply. Yesterday...

    SCIWire    11 October 2016
  • SCI Start the Week - 10 October

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

    Pipeline The pipeline was once again dominated by auto-related ABS last week. Trios of CMBS and RMB...

    News    10 October 2016
  • VALET exposure eyed

    Fitch has affirmed its ratings on and maintained stable outlooks for Volkswagen Auto Loan Enhanced T...

    News Round-up    7 October 2016
  • What's in a name?

    Classification confusion constraining MPL ABS

    Uncertainty over how to define marketplace loans - as securities or whole loans –...

    News Analysis    7 October 2016
  • Endurance acquisition announced

    SOMPO has announced a US$6.3bn acquisition of Endurance, the owner of ILS fund manager Blue Capital...

    Job Swaps    6 October 2016
  • ASF adds policy pro

    Robert Gallimore is set to join the Australian Securitisation Forum in the role of policy executive....

    Job Swaps    6 October 2016
  • Valuations exec recruited

    CBIZ Valuation Group has recruited Karl D'Cunha as md - portfolio valuation. His practice will inclu...

    Job Swaps    6 October 2016
  • Euro ABS/MBS picks up

    Activity in the European ABS/MBS secondary market is picking up. "There's a fair bit of primary su...

    SCIWire    6 October 2016
  • Diversifying strategies unit enhanced

    Sara Rejal has been promoted to head of liquid alternatives and Karen Dolenec to head of real assets...

    Job Swaps    5 October 2016
  • Trading pro tapped

    Cairn Capital has hired Asif Godall as its new deputy cio. He will report to cio Andrew Jackson and...

    Job Swaps    4 October 2016
  • Asset managers merge

    Henderson Group and Janus Capital Group have agreed to an all-stock merger of equals. The combined c...

    Job Swaps    4 October 2016
  • Cabela's acquisition boost

    Capital One is set to acquire Cabela's credit card operations, including US$5.2bn in receivables and...

    News Round-up    4 October 2016
  • ILS pro promoted

    Aon Securities has promoted Danny Bailey to its new head of capital markets. He will be based at the...

    Job Swaps    3 October 2016
  • Firm opens US office

    Leadenhall Capital Partners has set up a US operation, to be led by new hire Brian Weatherholtz. He...

    Job Swaps    3 October 2016
  • Auto ABS losses jump

    US prime and subprime auto loan ABS losses continued to increase last month, according to Fitch. The...

    News Round-up    3 October 2016