Structured Credit Investor


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.

  • 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
  • 'Carriers benefit' from cellular ABS

    The securitisation of the payments of cellular equipment instalment plans (EIPs) helps diversify cel...

    News Round-up    11 November 2016
  • Innovative aircraft ABS well-received

    The US$800m Blackbird Capital Aircraft Lease Securitization 2016-1 priced last week, with the senior...

    News    11 November 2016
  • More downgrades for UK SLABS

    Fitch has downgraded Honours' class B, C and D notes and maintains a rating watch negative on these...

    News Round-up    11 November 2016
  • Transfer pricing

    Italian ABS hindered by NPL valuation issues

    The securitisation of non-performing loans (NPLs) has been deemed a credible solution for Italian ba...

    News Analysis    11 November 2016
  • ILS firm swipes compliance vet

    Markel CATCo has hired John Whiley as chief compliance officer. He previously worked as vp and head...

    Job Swaps    10 November 2016
  • APRA issues regulation responses

    The Australian Prudential Regulation Authority has responded to submissions to its November 2015 dis...

    News Round-up    10 November 2016
  • Reporting conventions compared

    Moody's has published a study examining how auto ABS performance is reported the UK, German, Chinese...

    News Round-up    10 November 2016
  • KKR targets shipping loans

    Pillarstone, the platform set up by KKR to buy non-core and underperforming assets in Europe, seems...

    News    10 November 2016
  • Euro secondary stable

    The European securitisation secondary market remains stable despite wider market volatility. The c...

    SCIWire    10 November 2016
  • Six-year record for UK card ABS

    The three-month average rolling charge-off index for UK credit card ABS marked its steepest quarterl...

    News Round-up    9 November 2016
  • Spain consumer loan effect considered

    Spanish consumer lending volume is rising, notes Moody's, albeit from a modest base and with further...

    News Round-up    9 November 2016
  • Non-compliance hits UK SLABS

    Moody's has downgraded the ratings of three classes of Honours Series 2 and placed on review for dow...

    News Round-up    8 November 2016
  • Euro ABS/MBS distracted

    Activity in the European ABS/MBS secondary market continues to be light with participants focusing e...

    SCIWire    8 November 2016
  • SCI Start the Week - 7 November

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

    Pipeline There was another pickup in pipeline additions last week, as four new ABS, three RMBS and...

    News    7 November 2016
  • Information services chief appointed

    Ranjit Tinaikar has been named president of Fitch Information Services, effective 1 December. Based...

    Job Swaps    4 November 2016
  • ABS impact investing highlighted

    Community Capital Management (CCM) has disclosed a number of new innovative financing opportunities...

    News Round-up    4 November 2016
  • ACA achieves highest rating

    S&P has removed its double-A plus ratings cap on American Credit Acceptance (ACA) subprime a...

    News Round-up    4 November 2016
  • ABS team poached

    KeyBanc, the corporate and investment arm of KeyCorp, has created a five-person ABS team to expand i...

    Job Swaps    3 November 2016
  • Bumper Chinese deal announced

    A Chinese auto loan ABS thought to be the largest to date has joined the pipeline. Silver Arrow Chin...

    News Round-up    3 November 2016
  • Converging approach?

    Current status of capital relief trades discussed

    Representatives from Chorus Capital, Citi and Clifford Chance recently discussed the current status...

    Talking Point    2 November 2016