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.

  • Sales and trading head tapped

    Mizuho Americas has brought in Thomas Hartnett as senior md and head of fixed income sales and tradi...

    Job Swaps    19 July 2016
  • CDQ development

    Originator consolidation to drive issuance up?

    The €1.47bn Towers CQ transaction, which closed last month, is the first Italian salary as...

    News Analysis    18 July 2016
  • Weighing it up

    European ABS offerings, future in the balance

    The European secondary ABS value proposition is changing. Increasingly, credit is not investors' pri...

    News Analysis    18 July 2016
  • SCI Start the Week - 18 July

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

    Pipeline Last week's pipeline additions included a decent mix of MBS names. In the end there were s...

    News    18 July 2016
  • Foreign demand to drive Indian ABS

    Recent growth in the Indian securitisation market is primarily driven by the Reserve Bank of India's...

    News Round-up    18 July 2016
  • Investment chief replaced

    Peter Schmidt-Fellner is retiring as cio and a director of NewStar Financial, but will remain involv...

    Job Swaps    18 July 2016
  • Risk expert tapped

    Andrew Davidson & Co has recruited Richard Cooperstein to lead its risk model management. Th...

    Job Swaps    15 July 2016
  • MPL ABS ratings confirmed

    Moody's has confirmed its rating of Ba3 on the class C notes issued by the Prosper-loan backed Citi...

    News Round-up    15 July 2016
  • Debt, syndicate teams reshuffled

    CaixaBank has appointed Ainhoa Landa to head its debt capital markets business as part of a broader...

    Job Swaps    15 July 2016
  • Ownership change lifts ABS ratings

    Fitch has upgraded the Bosphorus Series 2015-A, 2015-B, 2015-C and 2015-D notes, as well as the Bosp...

    News Round-up    14 July 2016
  • Foreign aid ILS mooted

    London Market Group (LMG) has launched a white paper on an ILS solution for catastrophes in under-in...

    News Round-up    14 July 2016
  • SME joint initiative launches

    The European Investment Fund has teamed up with several national promotional institutions to launch...

    News Round-up    14 July 2016
  • Euro secondary stays light

    Flows in the European securitisation secondary market continue to be light though sentiment remains...

    SCIWire    14 July 2016
  • Demica boosts origination team

    Demica is continuing to build out its origination team with the addition of three new members. Angel...

    Job Swaps    13 July 2016
  • Citizens hires for SF push

    Citizens Bank has recruited Brent Hazzard as head of structured finance for its commercial banking b...

    Job Swaps    13 July 2016
  • ABL vet joins middle market firm

    Monroe Capital has hired asset-based lending veteran Marc Adelson as originations md. He will join B...

    Job Swaps    13 July 2016
  • RFC issued on fleet approach

    Moody's is requesting comments on proposed changes to its methodology for rating ABS backed by renta...

    News Round-up    13 July 2016
  • Negative interest rates hit ETD deals

    Legacy securitisations of Spanish electricity tariff deficit (ETD) debt are effectively charging int...

    News Round-up    13 July 2016
  • Markit merger completed

    IHS and Markit have completed their merger to form IHS Markit (SCI passim). The firm begins trading...

    Job Swaps    13 July 2016
  • Next steps

    Madden ruling creates landscape of uncertainty

    On 27 June the US Supreme Court decided not to hear the Madden vs Midland case, resulting in a conti...

    News Analysis    12 July 2016
  • Card ABS downgrades expected

    As much as 25% of S&P-rated European credit card ABS ratings could be downgraded following t...

    News Round-up    12 July 2016