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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.


  • 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
  • VW settlement ABS 'credit positive'

    Volkswagen has received final approval from a US federal court for a US$14.7bn settlement under whic...

    News Round-up    1 November 2016
  • CARAT juniors rated

    Moody's has assigned ratings to the previously unrated class E notes of two Ally Financial auto loan...

    News Round-up    1 November 2016
  • Negative coupons 'widespread'

    Negative calculated coupons are now widespread among European securitisation tranches, according to...

    News Round-up    1 November 2016
  • Securitisation programme prepped

    Callidus Capital Corp is expected to close its new securitisation programme by 15 November. The tran...

    News Round-up    31 October 2016
  • MOHE discrepancy highlighted

    Fitch has placed the Minnesota Office of Higher Education Supplemental Student Loan Program Revenue...

    News Round-up    31 October 2016
  • SCI Start the Week - 31 October

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

    Pipeline As with the preceding week, last week's additions to the pipeline were relatively modest....

    News    31 October 2016
  • Indian supply nears high

    Indian securitisation volume has jumped to R45,000 crore in the first six months of the current fisc...

    News Round-up    28 October 2016
  • Debut aircraft ABS prepped

    The first securitisation of aircraft managed by Air Lease Corporation (ALC) has been assigned prelim...

    News Round-up    28 October 2016
  • Gas-alternative recoveries analysed

    Continued low gas prices have reduced Americans' appetite for hybrid-electric and all-electric vehic...

    News Round-up    28 October 2016
  • Calypso cat bonds upgraded

    S&P has upgraded the Calypso Capital II class A and class B notes, following the advent of t...

    News Round-up    27 October 2016
  • Timeshare default repurchases climb

    Timeshare ABS default rates are rising and there is a growing trend of default repurchases and subst...

    News    27 October 2016
  • Euro ABS/MBS quiet

    This week has continued to be slow across the European ABS/MBS secondary market. "There's nothing...

    SCIWire    27 October 2016
  • Safe haven?

    Securitised sovereign bonds could bring economic stability

    A European bond comprised of securitised sovereign bonds from multiple European countries could help...

    News Analysis    26 October 2016
  • Landmark SME deals closed

    The EIB has disclosed its recent participation in two European SME securitisations - ROOF...

    News Round-up    25 October 2016
  • APAC ratings affirmed

    Fitch has affirmed the long-term ratings on 161 publicly-rated Asia-Pacific structured finance (SF)...

    News Round-up    25 October 2016
  • Utilisation drop hits container deals

    Two container ABS deals - BEACN 2012-1A and GCA 2013-1A - have been called so far this mon...

    News    24 October 2016
  • Strategic relationship formed

    New Ocean Capital Management, together with its major shareholders XL Group and Stone Point Capital,...

    Job Swaps    24 October 2016