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.

  • SCI Start the Week - 3 October

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

    PipelineAuto-related ABS dominated the pipeline last week, with a couple of consumer ABS, some RMBS...

    News    3 October 2016
  • FI team boosts securitisation expertise

    Mizuho has hired Subhathra Pavan to its fixed income sales team to help expand the firm's distributi...

    Job Swaps    30 September 2016
  • Top marks

    SLABS extension success exceeds expectations

    The final maturity dates on nine FFELP student loan ABS deals were extended earlier this month (SCI...

    News Analysis    29 September 2016
  • ILS duo recruited

    AXA Investment Managers has hired Marc Belbenoit-Avich and Robin Chiche to its ILS team. Belbenoit-A...

    Job Swaps    29 September 2016
  • Reporting service launched

    Moody's Analytics has launched Regulatory Reporter, a web-based tool designed to enable auto loan an...

    News Round-up    29 September 2016
  • Euro ABS/MBS keeps steady

    It continues to be a steady week in the European ABS/MBS secondary market. The run in to month end...

    SCIWire    29 September 2016
  • Product development head hired

    US Bank has hired James Ferguson to lead global strategies and product development for its securitie...

    Job Swaps    28 September 2016
  • Airbag recall raises loss risk

    Auto lease ABS have meaningful exposures to the recall of faulty Takata-manufactured airbags, notes...

    News Round-up    27 September 2016
  • RFC issued on tobacco ABS

    Moody's has issued a request for comment on proposed changes to its rating methodology for tobacco s...

    News Round-up    27 September 2016
  • Euro ABS/MBS starts slowly

    The European ABS/MBS secondary market has started the week slowly. Softer broader markets meant a...

    SCIWire    27 September 2016
  • SCI Start the Week - 26 September

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

    Pipeline Pipeline activity seemed elevated again last week. There were eight new ABS added, along...

    News    26 September 2016
  • Chinese NPL trio prepped

    Three Chinese issuers are in the market with NPL securitisations (see SCI pipeline). One of them &am...

    News Round-up    26 September 2016
  • Biggest PACE deal issued

    Renovate America is in the market with its eighth securitisation of PACE bonds. Dubbed HERO Funding...

    News Round-up    23 September 2016
  • Bank shuffles SF pros

    Credit Suisse has made a series of changes to its asset finance team, with a number of structured fi...

    Job Swaps    23 September 2016
  • Autos see credit deterioration

    US auto loan and lease credit performance is likely to continue to deteriorate in 2H16 and into 2017...

    News Round-up    22 September 2016
  • Delinquencies down for Italian SME ABS

    Total delinquencies of Italian SME ABS have decreased from April 2016 to July 2016, from 6.2% to 5.1...

    News Round-up    21 September 2016
  • Rated UK MPL ABS prepped

    Zopa is in the market with its inaugural rated consumer loan securitisation, which is the first rate...

    News Round-up    21 September 2016
  • Bumper week for ABS issuance

    Last week brought the highest number and dollar total of new ABS for any week for the past three yea...

    News Round-up    20 September 2016
  • Many Navient rating actions taken

    Moody's has upgraded 15 classes of notes and downgraded 14 classes in securitisations sponsored or a...

    News Round-up    19 September 2016
  • SCI Start the Week - 19 September

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

    Pipeline After the flood of additions in the week before, last week's pipeline activity was calmer....

    News    19 September 2016
  • Horizontal interest

    Sponsors assess horizontal risk retention benefits

    An increasing number of US sponsors are expected to retain a horizontal rather than a vertical risk...

    News Analysis    16 September 2016