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.

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  • ABL team expands

    MB Business Capital has opened a new office in Vancouver, Washington and appointed Kevin Schrader to...

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  • United Guaranty sale agreed

    Arch Capital Group is set to acquire United Guaranty Corporation and United Guaranty Insurance from...

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  • Fixed income teams merged

    BNP Paribas continues to revamp its investment banking operations by combining its primary and credi...

    Job Swaps    16 August 2016
  • Euro defaults hit post-crisis low

    Overall European structured finance credit quality increased in 2015, with the annual default rate f...

    News Round-up    15 August 2016
  • Japanese ratings surge

    S&P's rating of new Japanese securitisations rose by 34.2% year-on-year in 1H16 as negative...

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  • High yield team expanded

    Royal London Asset Management (RLAM) has expanded its global high yield team with four new hires&...

    Job Swaps    12 August 2016
  • NPL sales exceed 2015 levels

    Sales of European NPLs and non-core assets (NCAs) stand at €112bn of completed and ongoing...

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  • BPB deal rated

    Banca Popolare di Bari (BPB) has closed its much-anticipated NPL securitisation, becoming the first...

    News Round-up    12 August 2016
  • Treasury successor named

    John Frishkopf is set to retire from NewStar Financial next month, but will remain involved with the...

    Job Swaps    12 August 2016
  • Bermudan ILS players 'optimistic'

    Bermudan ILS participants are 'optimistic' that the market will continue to grow and diversify, acco...

    News Round-up    11 August 2016
  • Optimistic outlook

    Investors bullish on MPL, but changes needed

    Many interesting topics were raised about the current state and potential future of marketplace lend...

    Talking Point    11 August 2016
  • ABS syndicate head poached

    Mick Wiedrick is set to join BNP Paribas in October as head of ABS syndicate in New York. In the new...

    Job Swaps    11 August 2016
  • Money market tranches touted

    The basis between money market ABS tranches (MMABS) and corporate CP appears to be widening ahead of...

    News    11 August 2016
  • Broker hires for Americas team

    RFIB Group has appointed Glenn Jackson as md of RFIB Americas. He will be based in the firm's Tampa...

    Job Swaps    9 August 2016
  • VW settlement to boost prepays?

    Volkswagen's offer to buy back or terminate the leases on US vehicles affected by its emissions viol...

    News Round-up    9 August 2016
  • Japan stimulus to boost SMEs

    A new ¥28trn stimulus package introduced by the Japanese government is credit positive for...

    News Round-up    8 August 2016
  • SCI Start the Week - 8 August

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

    Pipeline A further 11 deals joined the pipeline last week. This was split into three ABS, three RMB...

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  • MBS hedge funds rebounding

    Preqin's 2Q16 Hedge Fund Survey shows that hedge funds in the credit strategy category experienced f...

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  • ILS pro takes new role

    The former head of international capital markets at Aon Securities has moved on to RenaissanceRe, wh...

    Job Swaps    5 August 2016
  • NPL renaissance

    €9bn Italian ABS provides fresh impetus

    Banca Monte dei Paschi di Siena (MPS) announced last week that it plans to offload its entire portfo...

    News Analysis    5 August 2016