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.

  • WestLB spin-off acquired

    Mount Street is set to acquire EAA Portfolio Advisors (EPA) from Erste Abwicklungsanstalt (EAA), whi...

    Job Swaps    23 January 2017
  • SCI Start the Week - 23 January

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

    Pipeline There was a clear skew towards auto ABS additions for the pipeline last week. As...

    News    23 January 2017
  • Distressed team beefs up

    Michael Carley has joined BTIG as a director of fixed income credit, focused on illiquid markets acr...

    Job Swaps    23 January 2017
  • CRE lawyer promoted

    Sutherland has elected three new partners and nine new counsel to the firm. One of the new counsel -...

    Job Swaps    20 January 2017
  • Cautious optimism

    Secondary CRT market gaining momentum

    The secondary market for capital relief trades has been growing alongside issuance of syndicated dea...

    News Analysis    20 January 2017
  • Tobacco update affects ratings

    Moody's has updated its methodology for rating tobacco settlement revenue securitisations. The metho...

    News Round-up    20 January 2017
  • MS names structured credit chief

    Morgan Stanley is moving one of its EMEA capital markets co-heads into Morgan Stanley Investment Man...

    Job Swaps    20 January 2017
  • Card ABS volume to grow

    Credit card debt in the US is growing while credit card utilisation rates are trending lower, sugges...

    News Round-up    19 January 2017
  • Unconstrained fund launched

    Dolfin has launched the Dolfin Unconstrained Credit Strategy, which targets consistently positive re...

    News Round-up    19 January 2017
  • Euro ABS/MBS accelerates

    Activity has accelerated in the European ABS/MBS secondary market after a slow start to the week. ...

    SCIWire    19 January 2017
  • Varied approaches

    Retained risk valuation practices gauged

    The horizontal retention piece of a securitisation could be considered the very definition of a Leve...

    News Analysis    19 January 2017
  • Bar loan ruling 'ABS negative'

    A 2016 ruling by the US Bankruptcy Court for the Eastern District of New York on the dischargeabilit...

    News Round-up    18 January 2017
  • ILS firm launched

    A new alternative asset management firm focused on ILS investments has been founded in Tel Aviv. Dub...

    Job Swaps    18 January 2017
  • Modelling head named

    MSCI has recruited David Zhang as head of securitised products research. In this newly created role,...

    Job Swaps    18 January 2017
  • Chrysler scandal 'ABS negative'

    The US Environmental Protection Agency (EPA) has issued a notice of violation of the Clean Air Act t...

    News Round-up    17 January 2017
  • ILS firm placements head appointed

    XL Catlin has appointed Anne Middleton as global head of placements, ceded reinsurance. Middleton wi...

    Job Swaps    17 January 2017
  • Euro secondary slow

    It's been slow start to the week so far for the European securitisation secondary markets. Partici...

    SCIWire    17 January 2017
  • Weather risk platform introduced

    Speedwell Weather has launched its weatherXchange platform, which aims to help companies access inde...

    News Round-up    16 January 2017
  • Ratings suits settled

    The US Department of Justice, 21 states and the District of Columbia have reached a nearly US$864m s...

    Job Swaps    16 January 2017
  • SCI Start the Week - 16 January

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

    Pipeline There were a few more additions to the pipeline last week. The final count consisted of tw...

    News    16 January 2017
  • Flawed logic

    Regulators' confidence in extra ratings 'misplaced'

    The regulatory drive to require multiple ratings for European structured finance products may not ac...

    News Analysis    13 January 2017