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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.


  • 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
  • Elliott to acquire Aeolus

    Elliott Management Corp has agreed in principle to acquire a controlling stake in Aeolus Capital Man...

    Job Swaps    2 November 2016
  • Pricing solution enhanced

    FINCAD's F3 solution now offers coverage for structured fixed income securities - including RMBS, AB...

    News Round-up    2 November 2016
  • ILS firm nabs risk vet

    RMS has hired Michael Steel as global head of solutions. He will also chair the company's Europe Lea...

    Job Swaps    2 November 2016
  • SLABS worries prompt downgrades

    A slew of Navient Solutions student loan ABS classes have been downgraded by Moody's as a result of...

    News Round-up    2 November 2016
  • Euro secondary patchy

    Activity in the European securitisation secondary market continues to be patchy. After a primarily...

    SCIWire    2 November 2016
  • Brazilian CRA warning

    One of Brazil's two main ABS vehicles may present greater risks than another for investors, Fitch sa...

    News Round-up    1 November 2016
  • APAC auto ABS report launched

    Moody's has launched the inaugural edition of its quarterly APAC auto ABS sector update. It is the s...

    News Round-up    1 November 2016