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.

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    Job Swaps    21 December 2016
  • Upwardly mobile

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    News Analysis    21 December 2016
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    News Analysis    21 December 2016
  • Further FFELP ABS extended

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    News Round-up    21 December 2016
  • MPL ABS 'compares well' in 2016

    Despite significant turbulence earlier in the year, marketplace lending ABS has maintained steady gr...

    News    20 December 2016
  • Lower credit MPL deal prepped

    SoFi is readying its thirteenth rated student loan securitisation, which is expected to be sold in a...

    News Round-up    19 December 2016
  • Insurance merger agreed

    Fairfax Financial Holdings and Allied World Assurance Company Holdings have entered into a merger ag...

    Job Swaps    19 December 2016
  • SCI Start the Week - 19 December

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

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    News    19 December 2016
  • Proving compliance

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    How to demonstrate significant risk transfer (SRT) was a hot topic at SCI's Capital Relief Trades Se...

    Talking Point    19 December 2016
  • ABCP performance to remain strong

    European ABCP conduit performance is expected to remain strong next year, reflecting the sound credi...

    News Round-up    16 December 2016
  • Learning by doing

    Issuers weigh capital relief opportunities and challenges

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    News Analysis    16 December 2016
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    The US Federal Reserve has raised interest rates from 0.25% to a range of 0.50%-0.75%, which will ha...

    News Round-up    15 December 2016
  • ABSPP external managers cut

    The ECB's governing council has decided that the ABSPP should now be fully implemented by national c...

    News Round-up    15 December 2016
  • CNL expectations recalibrated

    Moody's has taken rating actions on four TCF Auto Receivables Owner Trust transactions issued in 201...

    News Round-up    15 December 2016
  • NPL ABS volumes gauged

    Current global non-performing loan assets could translate to potential securitisation volumes of US$...

    News    15 December 2016
  • Euro issuance drops

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

    News Round-up    15 December 2016
  • Euro secondary unmoved

    The Fed's announcement yesterday appears to have had little effect so far as the European securitisa...

    SCIWire    15 December 2016
  • Second Salisbury prices wider

    Lloyds has closed a capital relief trade referencing a £2.1bn granular portfolio of UK SME...

    News    14 December 2016
  • Climate recommendations welcomed

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    News Round-up    14 December 2016
  • ILS firm makes exec changes

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    Job Swaps    14 December 2016
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    News Round-up    14 December 2016