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.

  • 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
  • STC risk weights reduced

    The Basel Committee has scaled down the risk weights for 'simple, transparent and comparable' (STC)...

    News    12 July 2016
  • Euro secondary strengthens

    Supported by the wider market rally the European securitisation secondary market is strengthening an...

    SCIWire    12 July 2016
  • MUFG poaches ABS head

    Mitsubishi UFJ Securities has brought in Haan Ti as head of ABS for Australia and New Zealand. He jo...

    Job Swaps    11 July 2016
  • Energy efficiency sale agreed

    Susi Partners, managing authority of the SUSI Energy Efficiency Fund, is set to acquire €1...

    News Round-up    11 July 2016
  • SCI Start the Week - 11 July

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

    Pipeline Pipeline activity picked up again last week, with ABS leading the charge. There were nin...

    News    11 July 2016
  • Brexit ratings outlook 'unchanged'

    Fitch has reassured the market that no more UK structured finance rating actions are expect...

    News Round-up    8 July 2016
  • Global issuance trends diverging

    S&P reports that that there is a clear divide in recent structured finance issuance trends,...

    News Round-up    8 July 2016
  • SFIG warns against tax rules

    The Structured Finance Industry Group (SFIG) has sent a letter to the US Treasury Department outlini...

    News Round-up    8 July 2016
  • Discount note cat bond emerges

    Swiss Re Capital Markets has placed a US$100m transaction in the ILS market, the first catastrophe b...

    News Round-up    8 July 2016
  • Cat bond activity dips

    Insurers and reinsurers' overall cat bond sponsorship approached US$3bn for the first half of this y...

    News Round-up    7 July 2016
  • Italy SME weakening noted

    The Italian ABS SME securitisation market is being increasingly dominated by originators with both l...

    News Round-up    7 July 2016
  • PREPA compromise confirmed

    A number of parties within PREPA's restructuring support agreement (RSA) recently agreed to...

    News Round-up    6 July 2016
  • Secondary markets advisors sought

    ESMA has published a call for candidates to form a consultative working group (CWG) for its secondar...

    Job Swaps    5 July 2016
  • Big appetite

    ABS investors hungry for more deals

    While political developments on the other side of the Atlantic may have increased risk, US ABS still...

    News Analysis    5 July 2016
  • International expansion eyed

    Tikehau Capital has completed two share capital increases of €510m and signed up two new i...

    Job Swaps    4 July 2016
  • SCI Start the Week - 4 July

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

    Pipeline Additions to the pipeline were limited once again last week, although two large Chinese de...

    News    4 July 2016
  • UK sovereign-linked deals downgraded

    Fitch has downgraded 18 tranches, and placed another two on rating watch negative, from six transact...

    News Round-up    1 July 2016
  • ESMA reviews harmonisation issues

    ESMA has released a peer review which pinpoints areas for greater EU harmonisation among national se...

    News Round-up    1 July 2016
  • LatAm expansion inked

    DBRS has opened a new office in Mexico City as part of its ongoing global expansion program. The age...

    Job Swaps    1 July 2016
  • Cross-border ABS prepped

    Engenium Capital is in the market with a cross-border Mexican equipment ABS. Dubbed Engenium Capital...

    News Round-up    1 July 2016