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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.


  • Strategic relationship formed

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

    Job Swaps    24 October 2016
  • SCI Start the Week - 24 October

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

    Pipeline The balance appeared to shift last week, as fewer deals joined the pipeline and far more d...

    News    24 October 2016
  • Ratings complaints prepped

    The US Department of Justice (DOJ) is preparing a civil complaint against Moody's in the US District...

    Job Swaps    24 October 2016
  • Rights issues

    Tax lien ABS growing, but third-party servicers scarce

    The US tax lien ABS sector has grown steadily since 2014 in terms of both issuance and investor inte...

    News Analysis    24 October 2016
  • Arcus makes first addition

    Lloyd's of London syndicate Arcus Syndicate 1856, which is fully capitalised with funds managed by t...

    Job Swaps    21 October 2016
  • China tests 'may lie ahead'

    While China's slowing economic growth has coincided with a slowdown in CLO activity in the country,...

    News    20 October 2016
  • Euro secondary unmoved

    The European securitisation secondary market remains unmoved by continuing strong new issue volumes....

    SCIWire    20 October 2016
  • Insurers test blockchain potential

    A group of insurers and reinsurers are exploring the potential of distributed ledger technologies to...

    News Round-up    19 October 2016
  • Structuring alpha

    Robert Allard, founding partner and ceo at Firebreak Capital, answers SCI's questions

    Q: How did Firebreak Capital become involved in the securitisation market? A: Firebreak Capital is...

    The Structured Credit Interview    18 October 2016
  • Chinese deals add to ABS traffic

    Recent weeks have seen a flood of auto ABS deals announced (see SCI pipeline), but the trend is not...

    News Round-up    18 October 2016
  • Model error disclosed

    Fitch has disclosed that interest payments to the class E and F notes of SCF Rahoituspalvelut I (Kim...

    News Round-up    18 October 2016
  • Euro secondary patterns persist

    Trading patterns in the European securitisation secondary market seen towards the end of la...

    SCIWire    18 October 2016
  • SCI Start the Week - 17 October

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

    Pipeline The long list of additions to the pipeline last week was once more driven by auto ABS. The...

    News    17 October 2016
  • Cross-sector SLABS criteria finalised

    Moody's has published its new cross-sector methodology for rating student loan ABS backed by pools c...

    News Round-up    17 October 2016
  • Scaling up

    Platforms eager to issue further marketplace ABS

    Funding Circle and Zopa intend to tap the securitisation market on a regular basis, following their...

    News Analysis    14 October 2016
  • Senior management shuffled

    Clayton Euro Risk has announced a number of changes to its senior management team. Among those affec...

    Job Swaps    14 October 2016
  • Indian ABS collateral 'improving'

    The underlying performance and asset quality of retail loans backing Indian ABS will improve over th...

    News Round-up    13 October 2016
  • Wireless spectrum deal prepped

    Sprint Corporation is in the market with a rare wireless spectrum securitisation. Dubbed Sprint Spec...

    News Round-up    13 October 2016
  • Euro ABS/MBS active

    The European ABS/MBS secondary market is staying active this week. "The busy primary market is tak...

    SCIWire    13 October 2016
  • Conn's re-offers notes

    Conn's has entered into an agreement to sell the previously retained class C notes issued as part of...

    News Round-up    12 October 2016
  • Excess baggage

    Reg AB 2 loan-level disclosures weighed

    Loan-level disclosure requirements under Regulation AB 2 are expected to have a limited impact on AB...

    News Analysis    12 October 2016