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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.


  • 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
  • CRT line-up finalised

    Panellists are being finalised for SCI's latest Capital Relief Trades Seminar, which is being held o...

    News Round-up    17 November 2016
  • Auto ABS restructured

    Italian auto loan ABS A-Best 14 - which closed on 11 May (see SCI's new issuance database)...

    News Round-up    16 November 2016
  • Reinsurance pro brought in

    TigerRisk Partners has appointed reinsurance industry veteran Patrick Denzer as partner, with a part...

    Job Swaps    15 November 2016
  • Cali tax vote 'ABS negative'

    The passing of California's Proposition 56 - which will increase the state's tobacco tax ra...

    News Round-up    15 November 2016
  • UK inflation to affect ABS, RMBS

    Brexit-driven inflation in the UK will be credit negative for securitisations backed by mortgages, a...

    News Round-up    15 November 2016
  • Green bond tool readied

    S&P has published an updated outline of its green bond evaluation framework, following the c...

    News Round-up    15 November 2016
  • Overcollateralisation errors identified

    Moody's has affirmed the ratings of six tranches from two student loan ABS sponsored by Darien Roway...

    News Round-up    15 November 2016
  • Euro secondary softens

    Declines in the bond market have begun to feed into the European securitisation secondary market. ...

    SCIWire    15 November 2016
  • SCI Start the Week - 14 November

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

    Upcoming SCI event Panellists are being finalised for SCI's latest Capital Relief Trades Seminar, '...

    News    14 November 2016
  • FFELP criteria revised

    Fitch has revised its criteria for rating US FFELP student loan ABS. The changes aren't expected to...

    News Round-up    11 November 2016