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.


  • Risk-sharing on the agenda

    Panellists participating in SCI’s Risk Transfer & Synthetics Seminar are primed to...

    News    7 March 2018
  • Diesel ban 'bad news' for auto ABS

    Germany’s Federal Administrative Court has ruled that cities in Germany can impose restric...

    News    5 March 2018
  • SCI Start the Week - 5 March

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

    Upcoming event SCI Risk Transfer & Synthetics Seminar - 13 March, New York SCI...

    News    5 March 2018
  • Landmark sukuk could be first of many

    The inaugural UK sharia-compliant RMBS recently closed, marking the start of a new asset class in th...

    News Analysis    2 March 2018
  • Market moves - 2 March

    North America Cowen and Company has named Philip Cushman as head of global institutional sales whi...

    Market moves    2 March 2018
  • Bank acquisition trend continues

    HSH Nordbank has been sold for €1bn to JC Flowers and Cerberus. The agreement is accompani...

    News Analysis    1 March 2018
  • Euro secondary slows

    January's optimism has faded throughout February as activity across the European securitisation seco...

    SCIWire    1 March 2018
  • PACE underwriting boosted

    Consumer protection legislation passed in California last October will collectively strengthen PACE...

    News    28 February 2018
  • NPL platform incentives weighed

    As part of efforts to facilitate a non-performing loan secondary market, the European Commission is...

    News Analysis    26 February 2018
  • SCI Start the Week - 26 February

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

    Upcoming event SCI Risk Transfer & Synthetics Seminar - 13 March, New YorkSCI's Synthetic Sec...

    News    26 February 2018
  • Risk transfer round-up - 23 February

    Deutsche Bank is said to be marketing another capital relief trade, dubbed CRAFT 2018-1. This follow...

    News    22 February 2018
  • SCI Start the Week - 19 February

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

    Upcoming event SCI Risk Transfer & Synthetics Seminar - 13 March, New York SCI...

    News    19 February 2018
  • 'Academic' SBBS to 'lack demand'

    A European Systemic Risk Board task force has published a paper arguing that European safe bonds, SB...

    News Analysis    16 February 2018
  • SCI Start the Week - 12 February

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

    Pipeline It was yet another busy week of pipeline additions. There were nine ABS, 11 CLOs, three CM...

    News    12 February 2018
  • Risk transfer round-up - 9 February

    Credit Suisse is rumoured to be re-tranching its existing risk transfer transactions, echoing recent...

    News    9 February 2018
  • Navient preps 'debut' refi SLABS

    Navient is tapping the ABS market for the first time after acquiring online lender Earnest. Its late...

    News    8 February 2018
  • Landmark sovereign ILS priced

    The IBRD has printed the largest sovereign risk transfer transaction ever and the second-largest cat...

    News    8 February 2018
  • Gearing up for green

    Two pilots funded by Horizon 2020 - the EU programme for research and innovation ̵...

    News Analysis    6 February 2018
  • SCI Start the Week - 5 February

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

    Pipeline The pipeline was dominated by ABS transactions last week, including a pair of structured s...

    News    5 February 2018
  • 'No end in sight' for ILS growth

    Last year was unprecedented for the global ILS market, with record issuance of around US$10bn and no...

    News    2 February 2018
  • Distressed exchange queried

    China Huarong Asset Management, one of China's largest state-owned distressed debt managers, yesterd...

    News Analysis    2 February 2018