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.

  • NPL plans accelerated

    Company hires and sector developments

    Eurobank merger Eurobank is merging with Grivalia in a bid to accelerate the reduction of non-perf...

    Market moves    30 November 2018
  • Tighter pricing

    Latest Elvetia trade completed

    Credit Suisse has completed a Swiss corporate and SME significant risk transfer trade from its Elvet...

    News    30 November 2018
  • Tough approach

    PRA guidance puts UK CRT issuers at a disadvantage

    The UK PRA’s latest significant risk transfer guidance is putting UK capital relief trade...

    News Analysis    30 November 2018
  • Funding boost for online lender

    Sector developments and company hires

    Alesco CDOs transferred The collateral management agreements for the Alesco Preferred Funding X to...

    Market moves    29 November 2018
  • Basel 4 impact will 'vary massively'

    Regulatory changes represent 'complete overhaul'

    Regulatory changes coming into effect next year will have a major impact on the way European banks c...

    News Analysis    29 November 2018
  • Term leveraging

    European ABS market update

    The European primary ABS market is still drifting wider, due to concentration of supply. &ldqu...

    Market Reports    29 November 2018
  • Timing issues

    European ABS market update

    The two-year senior notes of Compass Banca’s €900m Quarzo Series 2018 consumer AB...

    Market Reports    28 November 2018
  • Tax credits eyed

    Second Greek NPL ABS proposal unveiled

    The Bank of Greece has unveiled a securitisation scheme backed by its deferred tax credits (DTCs) th...

    News Analysis    27 November 2018
  • Canadian asset expansion

    Sector developments and company hires

    ILS TigerRisk Partners has hired Stephen Fromm as vice chairman of TigerRisk capital markets and a...

    Market moves    27 November 2018
  • Italian RMBS sell-off 'unlikely'

    Uncertainty ahead may see pan-European issuance drop

    A widespread sell-off of Italian RMBS is ‘unlikely’, despite a recent comment fr...

    News Analysis    26 November 2018
  • Start the week - 26 November

    A review of securitisation activity over the past seven days

    Market commentary US CLO equity and double-B bonds were casualties of last week’s drop i...

    News    26 November 2018
  • UK SLABS slated

    Sector developments and company hires

    EMEA Eurocastle Investment has appointed Hammad Khan to its board as a non-executive director, inc...

    Market moves    23 November 2018
  • Risk transfer round-up - 23 November

    CRT sector developments and deal news

    Credit Suisse is believed to be pricing a risk transfer transaction from its Elvetia programme on Mo...

    News    23 November 2018
  • Sweet spot

    Multi-arrangement ILS vehicle debuts

    Brit has launched Sussex Capital UK, the first vehicle to be given permission by the PRA under the U...

    News    23 November 2018
  • Financial frontier

    UAE poised for securitisation growth

    The United Arab Emirates continues to ameliorate investment conc...

    News Analysis    22 November 2018
  • Classification clarity

    Spanish SME ABS 'first' marketing

    Be-Spoke Capital is marketing an unusual, inaugural securitisation, backed by a portfolio of loans t...

    News Analysis    21 November 2018
  • CRT tranche downgraded

    Sector developments and company hires

    Acquisitions Spruce Finance has been acquired by HPS Investment Partners. Spruce will be headquart...

    Market moves    21 November 2018
  • Bloodbath blues

    European ABS market update

    The European ABS market has repriced, after taking a hit yesterday when the S&P 500 index pl...

    Market Reports    21 November 2018
  • Tougher approach

    KNF stance puts Polish securitisation on hold

    The future of securitisation and closed-end securitisation funds in Poland remains uncertain, follow...

    News Analysis    21 November 2018
  • Long goodbye

    First non-Libor linked ABS anticipated

    Lloyds became the first bank to issue a benchmark covered bond tied to the sterling overnight index...

    News Analysis    20 November 2018
  • Credit clutch

    European ABS market update

    The European ABS slow-down continues, with prices drifting wider and subdued credit growth across th...

    Market Reports    20 November 2018