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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.


  • 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
  • Cat bond issuance declining

    Catastrophe bond issuance averaged two deals a month in the 12 months to 30 June 2016, notes Aon Sec...

    News Round-up    9 September 2016
  • Canadian SF market 'strong'

    The Canadian securitisation market has remained healthy and balanced throughout 2016, according to D...

    News Round-up    8 September 2016
  • Lender seeks asset-backed future

    Fintech consumer lender Uberima has appointed Richard Bartlett as cfo to help drive the shift to an...

    Job Swaps    8 September 2016
  • Structured products pro recruited

    JLT Re has hired Matthew Carter as a partner in its London market and international divisio...

    Job Swaps    8 September 2016
  • Chinese lease ABS listed

    Shanghai Renren Finance Leasing Co has launched Leasing Asset-Backed Securitization Plan II, which w...

    News Round-up    7 September 2016
  • UCITS fund takes off

    Angel Oak Capital Advisors reports that its MontLake Angel Oak Multi-Strategy Income UCITS Fund has...

    News Round-up    7 September 2016
  • Capital relief trades webinar due

    SCI is hosting a complimentary webinar on the current status of capital relief trades. The event is...

    News Round-up    6 September 2016
  • Euro secondary stays positive

    The positive tone continues across the European securitisation secondary market. Although...

    SCIWire    6 September 2016
  • Green bond scores proposed

    S&P is proposing a new product to analyse and estimate the environmental impact of projects...

    News Round-up    5 September 2016
  • ILS start-up names ceo

    Samir Shah has been appointed ceo of Ledger Investing, a start-up that seeks to provide a B2B market...

    Job Swaps    5 September 2016
  • NexPoint targets BDVC takeover

    NexPoint has set out its proposals for a proposed takeover of the Business Development Corporation o...

    Job Swaps    2 September 2016
  • Vario adds ex-JPM pair

    Vario Partners has appointed Markus Gesmann as head of research and modelling and Mike Kontaratos as...

    Job Swaps    2 September 2016
  • Ashurst trio poached

    Paul Hastings has recruited a trio of structured finance partners - Michael Smith, Diala Minott and...

    Job Swaps    2 September 2016
  • Picking up PACE

    Ygrene seeking to make its mark in ABS

    Ygrene Energy Fund is planning a securitisation before year-end that will offer a unique pool of PAC...

    News Analysis    1 September 2016
  • SF department launched

    Gattai Minoli Agostinelli & Partners has launched a structured finance department. It will b...

    Job Swaps    1 September 2016
  • Interim chief named

    Stephen Joynt has been appointed interim ceo of DBRS. He will continue to serve as executive chairma...

    Job Swaps    1 September 2016
  • Payment history scrutinised

    The ability and willingness of catastrophe bond issuers to pay claims in a timely manner continue to...

    News    1 September 2016
  • Euro secondary stable

    The European securitisation secondary market remained stable throughout August and that looks unlike...

    SCIWire    1 September 2016