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.


  • SCI Start the Week - 9 October

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

    Pipeline It was a quieter week for the pipeline, with activity noticeably down on the week before....

    News    9 October 2017
  • Credit unions to tap ABS market?

    US credit unions could soon tap the securitisation market after the National Credit Union Administra...

    News    6 October 2017
  • Auto ABS value explored

    There is still good value to be found among US auto ABS subordinate tranches. This appears to be par...

    News    5 October 2017
  • Rating agency opens in Europe

    KBRA has opened its first European office, located in Dublin, Ireland, and intends to expand into fu...

    News    5 October 2017
  • New dawn for bank funding strategies?

    The European securitisation market faces what is expected to be an "interesting" year ahead, as low-...

    News Analysis    4 October 2017
  • Direct lending warehouse formed

    Bespoke Capital has established a direct lending warehouse facility, set up as a cashflow securitisa...

    News    3 October 2017
  • Euro secondary sustained

    Activity levels continue to be sustained if not spectacular in the European securitisation secondary...

    SCIWire    3 October 2017
  • SCI Start the Week - 2 October

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

    Pipeline It was a busy week of comings and goings for the pipeline. At the close of Friday, 11 new...

    News    2 October 2017
  • Job Swaps round up - 29 September

    North America HouseCanary has hired Josh Seiff to lead business development. He joins from Fannie...

    Job Swaps    29 September 2017
  • Risk transfer round up - 29 September

    The focus of this past week has been the EBA's SRT discussion paper. Regulators and market participa...

    News    29 September 2017
  • BMO steps on the gas with debut ABS

    Bank of Montreal is marketing an inaugural auto securitisation, called Canadian Pacer Auto Receivabl...

    News    29 September 2017
  • First solar ABS looks to pay dividends

    Dividend Finance is in the market with its first term ABS securitisation collateralised by secured r...

    News    29 September 2017
  • Trustee role rewritten by court?

    A ruling by the UK High Court could have significant implications for trustees, potentially redefini...

    News Analysis    29 September 2017
  • Aviation ABS prepped for take-off

    Global Jet Capital is marketing an inaugural US$1.48bn aircraft ABS. Dubbed Business Jet Securities...

    News    28 September 2017
  • Standardisation to bridge synthetic STS gap?

    The EBA's recent discussion paper on significant risk transfer (SRT) outlines the common structural...

    News Analysis    28 September 2017
  • ReoCos boost Italian NPL prospects

    The Italian parliament recently approved new amendments to the Italian securitisation law, aimed at...

    News Analysis    28 September 2017
  • PCP agreements pressure UK ABS

    The increased use of personal contract purchase (PCP) agreements is putting pressure on UK auto ABS,...

    News    27 September 2017
  • Caribbean consumer deal prepped

    CFG Holdings is in the market with a consumer ABS backed by a pool of local currency fixed-rate pers...

    News    25 September 2017
  • SCI Start the Week - 25 September

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

    Pipeline Additions to the pipeline last week were fairly broadly split. There were five ABS added,...

    News    25 September 2017
  • Risk transfer round-up - 22 September

    A Barclays significant risk transfer deal planned for mid-September has reportedly been delayed unti...

    News    22 September 2017
  • EBA releases SRT discussion paper

    The EBA has released its significant risk transfer (SRT) discussion paper, the main elements of whic...

    News    20 September 2017