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.


  • 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
  • Smaller lessors lifting aircraft ABS

    Smaller aircraft lessors have increasingly tapped the ABS market over the last 18 months, with estab...

    News    18 September 2017
  • SCI Start the Week - 18 September

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

    Pipeline There was greater variety to last week's pipeline additions, with significantly fewer ABS...

    News    18 September 2017
  • 'Substantial' green ABS volumes eyed

    Vehicle and housing loans have the potential to produce substantial flows of large-scale green ABS t...

    News Analysis    18 September 2017
  • SCI Start the Week - 11 September

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

    Pipeline There were several additions to the pipeline last week, with ABS accounting for most of th...

    News    11 September 2017
  • Job swaps round-up - 8 September

    EMEA Tiger Risk UK has hired Michael Wade as a non-executive chair of TigerRisk Capital Markets an...

    Job Swaps    8 September 2017
  • Euro secondary returns

    The European securitisation secondary market is beginning to return to life after the summer. Augu...

    SCIWire    7 September 2017
  • Further ratings reviewed on margin requirements

    Fitch has placed 38 ABS tranches on rating watch negative, due to the reduced likelihood of counterp...

    News    4 September 2017
  • SCI Start the Week - 4 September

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

    Pipeline There were relatively few pipeline additions ahead of the Labor Day weekend. The final cou...

    News    4 September 2017
  • Job swaps round-up - 1 September

    EMEA Credit Suisse has hired Constantin Hulst as a CLO structurer to its European CLO origination...

    Job Swaps    1 September 2017
  • Risk transfer round-up - 1 September

    As expected, August was a quiet month for capital relief trade issuances. But market sources continu...

    News    1 September 2017
  • Hurricane Harvey impact weighed

    While the picture is not yet clear in terms of the total damage inflicted by Hurricane Harvey, it lo...

    News    1 September 2017
  • Libor transition provisions eyed

    Despite the UK FCA's recent announcement that it plans to phase Libor out by 2021 (SCI 31 July), the...

    News Analysis    25 August 2017
  • Ukrainian NPL sales gain traction

    DebtX is set to facilitate the largest Ukrainian NPL portfolio sale next month, signalling a growing...

    News Analysis    25 August 2017
  • NPL auction model highlighted

    Online platform Debitos welcomes the European Commission's public consultation on the development of...

    News Analysis    23 August 2017
  • Bond Connect debuts auto ABS

    Ford Automotive Finance (China) (FAFC) has launched the first securitisation utilising Bond Connect,...

    News    23 August 2017
  • IBR driving collateral convergence

    FFELP student loan ABS collateral performance has converged in recent years due to the growing use o...

    News    22 August 2017
  • SCI Start the Week - 21 August

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

    Pipeline Only a handful of transactions remained in the pipeline at the end of last week. The major...

    News    21 August 2017
  • Risk transfer framework outlined

    Outlines of the main elements of the EBA's risk transfer discussion paper - due to be rele...

    News    18 August 2017
  • Air Berlin insolvency affects aircraft ABS

    Air Berlin filed for insolvency yesterday. While intervention from the German state should keep the...

    News    16 August 2017
  • Exeter breach an 'atypical' event

    EART 2015-2 senior bondholders received no principal payment this month, after the auto ABS deal's c...

    News    16 August 2017