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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.


  • 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
  • Rating agency increases reach

    Scope Corporation is set to acquire FERI EuroRating Services, effective from the start of August. Th...

    Job Swaps    30 June 2016
  • Acorn Re notes affirmed

    Fitch has affirmed Acorn Re Series 2015-1's US$300m class A notes at double-B. The rating agency bel...

    News Round-up    30 June 2016
  • Damage control

    Brexit hits European ABS recovery, capital markets reform

    The UK's vote to leave the EU has caused untold damage to the recovery of the European securitisatio...

    News Analysis    30 June 2016
  • Reclassification challenges outlined

    A number of financial institutions have reclassified their structured finance books in accordance wi...

    News    30 June 2016
  • Euro ABS/MBS normalising

    European ABS and MBS have been quick to shrug off Brexit worries, with activity building up again th...

    SCIWire    30 June 2016
  • Recruitment rocked

    Brexit compounding ABS hiring issues

    The recruitment outlook for structured finance took a potentially big blow when the UK decided to le...

    News Analysis    30 June 2016
  • Settlement reinvestment options weighed

    Current holders of non-agency RMBS from 512 Countrywide deals have finally received almost US$8bn in...

    News    29 June 2016
  • Debut cell phone deal nears

    Fitch has assigned preliminary ratings to the first securitisation to be backed by cell pho...

    News Round-up    29 June 2016
  • Solar value proposition discussed

    KBRA says that the phenomenal recent growth of distributed solar photovoltaic (PV) generation in the...

    News Round-up    29 June 2016
  • Energy expert picked up

    Crédit Agricole has appointed Gerard Vincitore as md in its structured finance advisory gro...

    Job Swaps    29 June 2016
  • Exchange offer launched

    Markit has commenced an offer to exchange any and all of the outstanding US$750m aggregate principal...

    Job Swaps    29 June 2016
  • SF upgrades keep momentum

    The global structured finance upgrade rate reached a record high in 2015, according to S&P....

    News Round-up    28 June 2016
  • Cross-border first for Korean ABS

    Hyundai Commercial has completed the first cross-border cash securitisation of auto loans to obligor...

    News Round-up    28 June 2016
  • Madden uncertainty to continue

    The US Supreme Court has denied certiorari in the Madden vs Midland Funding case, electing not to re...

    News Round-up    28 June 2016
  • Euro secondary sidelined

    Most participants are waiting on the sidelines in the European securitisation secondary market amid...

    SCIWire    28 June 2016
  • False alarm?

    Basel CRT warning played down

    The Basel Committee caused somewhat of a stir earlier this month when it warned banks against increa...

    News Analysis    27 June 2016
  • SCI Start the Week - 27 June

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

    Pipeline Pipeline additions were limited last week. The only ABS was €1bn Silver Arrow...

    News    27 June 2016
  • Brexit effects

    The immediate financial market reaction to the UK's decision to leave the EU has been pronounced, wi...

    News    24 June 2016
  • MPL conference line-up confirmed

    Panellists have been confirmed for SCI's Second Annual Marketplace Lending Securitisation Seminar, w...

    News Round-up    24 June 2016
  • Agency recruits trio

    Morningstar Credit Ratings has made a trio of new hires in New York, including Lea Overby as md, lea...

    Job Swaps    24 June 2016