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.


  • 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
  • MPL securitisations 'worth risks'

    Marketplace lending continues to grow, but so too do delinquencies and losses. Morgan Stanley notes...

    News Round-up    3 August 2016
  • PACE acceptance is 'ABS positive'

    The Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) are to being to ins...

    News Round-up    3 August 2016
  • Condominium price surge 'positive'

    Moody's says that rising condominium prices is positive for Japanese RMBS as it will increase recove...

    News Round-up    3 August 2016
  • Aussie metrics approach crisis levels

    Delinquencies for Australian auto loan ABS and prime RMBS have risen steadily over the five months t...

    News Round-up    3 August 2016
  • Colombian ABS risk highlighted

    The liquidation of non-bank financial institution (NBFI) Estraval and the losses related to privatel...

    News Round-up    3 August 2016
  • US ABS issuance booms

    Variability in US ABS new issue volume over the last 12 months has reached its highest level in the...

    News Round-up    2 August 2016
  • Spanish crowdfunding gets green light

    The official registration of the first equity crowdfunding platforms in Spain last week presented fu...

    News Round-up    1 August 2016
  • SCI Start the Week - 1 August

    A look at the major activity in structured finance over the past seven days. Print last week's news ...

    Pipeline The final week of July brought six new ABS deals to the pipeline, as well as two CMBS and...

    News    1 August 2016
  • Card ABS metrics normalising

    US credit card ABS performance is beginning to normalise from historical lows following a gradual sh...

    News Round-up    29 July 2016
  • 'Watershed' securitisation facility closed

    Sun Life Assurance Company of Canada, Securcor and Blue Bridge Finance have closed a private securit...

    News Round-up    28 July 2016
  • APAC ratings supported

    Fitch affirmed the long-term ratings on 131 Asia-Pacific structured finance and structured credit (S...

    News Round-up    27 July 2016
  • BNP picks up duo

    BNP Paribas is continuing to reshape it securitisation team in Europe with the additions of Bilal Hu...

    Job Swaps    27 July 2016
  • FFELP criteria updated

    Fitch has published its revised criteria for rating US FFELP student loan ABS. The main changes to t...

    News Round-up    27 July 2016
  • KBRA confirms SF managers

    Kroll Bond Rating Agency has confirmed the names running its structured finance team hierac...

    Job Swaps    27 July 2016
  • ABL team recruited

    Texas Capital Bank has recruited Chris Capriotti, Jeff Tompkins and Olivia Pipitone to take on respo...

    Job Swaps    27 July 2016
  • Benchmark beginnings

    Positive reception for debut device payment ABS

    Verizon's debut securitisation of device payment plan agreements (DPPAs) earlier this month marked t...

    News Analysis    27 July 2016
  • Green bonds surging

    Global green bond issuance rose in 2Q16 to a new quarterly high of US$20.3bn, US$3.4bn more...

    News Round-up    26 July 2016
  • AIR to model pandemic ILS

    AIR Worldwide has been chosen by the World Bank Group to model its Pandemic Emergency Financing Faci...

    News Round-up    26 July 2016
  • Auditing issues

    Subordinate assumptions, transparency examined

    Auditing the accuracy of a client's most complex fair value measurements is no mean feat. There are...

    News Analysis    26 July 2016
  • Commercial PACE financing boost

    CleanFund has entered into an agreement with Soligent entity Solar Engine to finance the purchase an...

    Job Swaps    26 July 2016