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.

  • Auto finance growth to continue

    EMEA auto ABS performance should stay strong, says Moody's in the first of its new EMEA auto ABS sec...

    News Round-up    31 August 2016
  • New Chinese structure 'credit positive'

    The introduction of a new type of asset-backed note in China which incorporates a trust structure is...

    News Round-up    30 August 2016
  • Secondary education

    Liquidity, accurate valuations could stabilise sector

    The first half of 2016 brought several challenges for the marketplace lending industry in the US, wi...

    News Analysis    29 August 2016
  • Auto ABS methodology finalised

    Scope has published its final auto ABS rating methodology, confirming that it is largely unchanged f...

    News Round-up    26 August 2016
  • BRAIS acquisition closed

    Bloomberg has completed its acquisition of Barclays Risk Analytics and Index Solutions (BRAIS) from...

    Job Swaps    25 August 2016
  • Call variability observed

    Most subprime auto ABS issuers have exercised clean-up calls in a relatively efficient manner, calli...

    News    25 August 2016
  • Nordea completes synthetic deal

    Nordea Bank has sold a synthetic securitisation referencing €8.4bn in SME and corporate lo...

    News    25 August 2016
  • Singular circumstances

    Regulatory changes fuelling rise of 'special situations'

    European banks are fundamentally changing the way they structure and sell securitisations. A rise in...

    News Analysis    25 August 2016
  • Zero floor inserted

    Santander has amended the transaction documents for Bilkreditt 6, its 2014 Norwegian auto loan ABS,...

    News Round-up    24 August 2016
  • Willis ceo announced

    Willis Re has appointed Chris McDowell as ceo of Willis Re Bermuda. On 1 January 2017, he will offic...

    Job Swaps    24 August 2016
  • ABS syndicate head replaced

    James Gray has been appointed head of ABS syndicate at Deutsche Bank. The promotion sees hi...

    Job Swaps    23 August 2016
  • SF heads announced

    US Bank has hired Joe Nardi to lead its global structured finance group, providing services that sup...

    Job Swaps    23 August 2016
  • FFELP SLABS 'info lacking'

    Model risk remains high and collateral transparency remains limited in FFELP student loan ABS, say W...

    News    23 August 2016
  • ECON amendments weighed

    The European Parliament's ECON committee recently published 526 amendments to the proposed new Europ...

    News    23 August 2016
  • JPMorgan shakes up syndicate

    JPMorgan has formed a new credit product development team, which will be headed by Ryan O'Grady and...

    Job Swaps    23 August 2016
  • FFELP notes upgraded

    Moody's has upgraded 14 classes of notes and affirmed eight additional tranches across 19 FFELP stud...

    News Round-up    22 August 2016
  • SCI Start the Week - 22 August

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

    Pipeline The outstanding deal pipeline has shrunk significantly over the past few weeks as the year...

    News    22 August 2016
  • ILS approach finalised

    AM Best has finalised its methodology for rating insurance-linked securities and insurance-linked st...

    News Round-up    19 August 2016
  • Aon appoints Asia director

    Aon has appointed Les Collett as regional director for structured credit and political risk, based i...

    Job Swaps    18 August 2016
  • Syndicated loan team expands

    Muzinich has recruited an additional four names as it increases its European syndicated loa...

    Job Swaps    18 August 2016
  • TFIF to tap 'favourable conditions'

    TwentyFour Income Fund (TFIF) intends to raise additional equity capital through the issue of new or...

    News Round-up    17 August 2016