Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London
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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.


  • 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
  • Weather prediction

    JLT's weather ILS the first of many?

    The first weather catastrophe bond for 17 years has hit the market. It is hoped that the deal will k...

    News Analysis    15 September 2016
  • Online lender secures funding

    Online lender InterNex has secured a US$100m funding line from 400 Capital. It will help the lender...

    Job Swaps    15 September 2016
  • Hire supports new service

    Bishopsfield Capital Partners has hired Neil Fitzgerald to support the launch of its new Project Age...

    Job Swaps    15 September 2016
  • End of the road?

    ABSPP volumes down, success of programme questioned

    The ECB's ABSPP is entering its third year in November and since inception has been joined by three...

    News Analysis    15 September 2016
  • CRT conference line-up confirmed

    Panellists have been confirmed for SCI's Capital Relief Trades Seminar, which is being held tomorrow...

    News Round-up    14 September 2016
  • Carlyle hires credit head

    The Carlyle Group has brought in Mark Jenkins for the newly created role of head of global...

    Job Swaps    14 September 2016
  • Nine FFELP deals extended

    Nelnet has extended the final maturity date on nine FFELP student loan ABS deals following investor...

    News Round-up    14 September 2016
  • TigerRisk adds London pro

    TigerRisk Capital Markets & Advisory has appointed Leo Beckham as md. He will be based in Lo...

    Job Swaps    14 September 2016
  • ABS expertise enhanced

    Capital One has expanded its financial institutions group (FIG) by appointing four senior figures. T...

    Job Swaps    13 September 2016
  • Radian regains SF pro

    Peter Danna has returned to Radian for a second stint, serving as svp in structure...

    Job Swaps    13 September 2016
  • Chinese issuance gains momentum

    China's structured finance market will continue expanding in both scope and scale, with increased as...

    News Round-up    13 September 2016
  • Euro secondary unmoved

    The European securitisation secondary markets have been unmoved by recent broader market volatility....

    SCIWire    13 September 2016
  • UK ILS bill set for 2017

    The London Market Group (LMG) has welcomed a letter from HM Treasury that outlines early 2017 as the...

    News Round-up    12 September 2016
  • Green bond grading assigned

    Moody's has assigned a green bond assessment (GBA) of GB1 to US$320.24m of HERO Funding 2016-3 class...

    News Round-up    12 September 2016
  • Babson merges firms

    Babson has completed the integration of four Massachusetts Mutual Life Insurance affiliates. Babson...

    Job Swaps    12 September 2016
  • ILS firm boosts expertise

    Michael Watson has joined Vario Partners in a non-executive capacity. He officially begins at the IL...

    Job Swaps    12 September 2016
  • Armenian ABS debuts

    Cardno has provided technical assistance to the US Agency for International Development in connectio...

    News Round-up    12 September 2016
  • KBRA makes more moves

    Kroll Bond Rating Agency has appointed Ira Powell as chief of staff, following the hire of Mauricio...

    Job Swaps    12 September 2016
  • SCI Start the Week - 12 September

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

    Pipeline A flood of ABS and CMBS additions swelled the pipeline last week. There were 18 of the fo...

    News    12 September 2016
  • Agency hires for Europe push

    Kroll Bond Rating Agency has brought in Mauricio Noe as head of Europe, with plans for the US&nb...

    Job Swaps    9 September 2016