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.

  • Chinese MPL ABS prepped

    Online lender brings debut rated deal

    Beijing Jingdong Century Trade Co is marketing a consumer ABS under the asset-backed notes (ABN) wit...

    News    3 August 2018
  • SCI Start the Week - 30 July

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

    A fairly broad range of transactions are in the pipeline although new issuance is leaning towards th...

    News    30 July 2018
  • Market moves - 27 July

    Company developments and new hires in the structured finance sector.

    Acquisitions American Mortgage Consultants (AMC), has announced the acquisition of certain personn...

    Market moves    27 July 2018
  • Testing time

    European ABS succumbs to widening pressures

    Poor new issue execution has seen the European securitisation market finally succumb to widening pre...

    News Analysis    24 July 2018
  • SCI Start the Week - 23 July

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

    Pipeline The pipeline returned to full flow last week. Unusually, CMBS accounted for the majority o...

    News    23 July 2018
  • Market moves - 20 July

    A weekly breakdown of new hires and company developments in the global structured finance industry.

    Acquisition agreed Stone Point Capital’s Trident VII fund is set to acquire Sabal Capita...

    Market moves    20 July 2018
  • Fight for control eyed

    Rapid amortisation event 'unlikely' to occur

    Allegations of embezzlement and a fight for control of Harley Marine Services (HMS) have emerged les...

    News    20 July 2018
  • Fit for purpose?

    Efficacy of STS label questioned

    Once portrayed as the initiative to revitalise European securitisation, the STS label has been vario...

    Talking Point    18 July 2018
  • SCI Start the Week - 16 July

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

    Pipeline Marketing of new securitisations continued to gain momentum last week, following the Indep...

    News    16 July 2018
  • Return to form?

    More traditional synthetic CRE deals emerging

    A number of issuers are working on CRE capital relief trades, including some UK banks that issued CR...

    News Analysis    13 July 2018
  • Multi-originator GACS deal debuts

    Iccrea Banca completes landmark NPL securitisation

    Iccrea Banca, the cooperative group owned by multiple Italian mutual banks, has issued a €1...

    News Analysis    13 July 2018
  • Market moves - 13 July

    A weekly breakdown of recent hires and company developments in the structured finance industry.

    Acquisitions and investments Alantra has acquired KPMG UK’s portfolio solutions group bu...

    Market moves    13 July 2018
  • NPL SPV established

    Barclays financing portfolio acquisition

    Barclays, Varde Partners and Guber Banca have acquired a €1.4bn non-performing loan portfol...

    News    12 July 2018
  • SCI Start the Week - 9 July

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

    Pipeline With 4 July having a typically big impact on the issuance calendar, the pipeline was ligh...

    News    9 July 2018
  • Article 14 negotiations begin

    Amendment to reduce securitisation compliance requirements

    Trilogue discussions between the European Parliament, the European Commission and the European Counc...

    News    9 July 2018
  • Landmark UTP deal completed

    Inaugural large-scale, pure UTL transaction inked

    Bain Capital Credit has acquired a portfolio of unlikely-to-pay (UTP) corporate loans, dubbed Projec...

    News    4 July 2018
  • SCI Start the Week - 2 July

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

    Pipeline The pipeline has been dominated by UK transactions ahead of the Independence Day holiday....

    News    2 July 2018
  • Barclays engineers comeback

    Further impetus added to Colonnade programme

    Barclays has returned to the risk transfer market with Colonnade Global 2018-1, a £34.2m c...

    News    2 July 2018
  • Green ABS branches out

    Commercial PACE and renewables gain traction as green ABS expands

    PACE is catching on in both the US and Europe. An April whitepaper from the New York State Energy Re...

    News Analysis    29 June 2018
  • Multi-seller GACS deals pending

    Large portfolio sizes facilitate critical mass

    Multi-seller GACS securitisations brought by smaller Italian banks are emerging, with at least two t...

    News Analysis    29 June 2018
  • Market moves - 29 June

    CLO manager acquired THL Credit Advisors has acquired the collateral management business of Kramer...

    Market moves    29 June 2018