Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London
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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.


  • Model behaviour?

    Accuracy of ILS loss predictions hinges on evolving models

    Actual losses in the ILS market may be broadly in line with predictions, but there are sectors with...

    News Analysis    25 February 2019
  • A strong start

    Day one at SFIG Vegas

    Moods appear to be running high at the start of SFIG Vegas 2019. Despite being only a half...

    News    25 February 2019
  • Maintaining flexibility

    Fiona Walden, vp, credit and financial lines at RenaissanceRe, answers SCI's questions

    Q: How and when did RenaissanceRe became involved in the securitisation market? A: We were set up 2...

    The Structured Credit Interview    22 February 2019
  • Restructuring incentive

    Greece unveils mortgage NPL boost

    The Greek government is working on a plan that aims to meet ECB non-performing loan reduction target...

    News Analysis    22 February 2019
  • Law firm boosts derivatives capability

    Company hires and sector developments

    CLO firm promotions Churchill has announced the promotion of Mat Linett, md, from deputy head of u...

    Market moves    22 February 2019
  • Tough stance

    ESMA insists on private securitisation disclosures

    On 31 January, ESMA published a document that amends its draft regulatory technical standards (RTS)...

    News Analysis    22 February 2019
  • CLO partnership launched

    Sector developments and company hires

    CDS trends discussed Mayer Brown has commented on trends in single-name CDS credit event determina...

    Market moves    21 February 2019
  • Stand-out performer

    Systematic role for structured credit

    Funds focused on structured credit were, as a whole, stand-out performers in 2018. Of the 50 US stru...

    News Analysis    21 February 2019
  • UK paper on the block

    European secondary ABS market update

    The European secondary ABS market has rallied since the beginning of the year. However, activity now...

    Market Reports    21 February 2019
  • Law firm nabs SF vet

    Company hires and sector developments

    Europe Latham & Watkins has recruited Jeremiah Wagner as a partner in its finance departme...

    Market moves    20 February 2019
  • Lacking clarity

    Libor transition still fraught with challenges

    With only two years to go until Libor is officially phased out in 2021, a number of questio...

    News Analysis    19 February 2019
  • CLO firm restructure

    Company hires and sector developments

    Acis restructuring confirmed The US bankruptcy court in Dallas has confirmed Acis Capital Manageme...

    Market moves    19 February 2019
  • Secondary focus

    Investors sitting on cash with new European issuance drought

    European structured finance traders continue to focus on the secondary market as they wait for regul...

    News    15 February 2019
  • Risk transfer round-up - 15 February

    CRT sector developments and deal news

    The first quarter of this year is expected to see reduced capital relief trade issuance, due to ESMA...

    News    15 February 2019
  • Oil opportunities

    Royalty-backed future flow ABS to develop

    Oil and gas companies are expected to tap the securitisation market with a new structure. The first...

    News    15 February 2019
  • Italian auto firms fined

    Company hires and sector developments

    CLO hire Geoffrey Horton has joined Barclays as vp, CLO and loan strategist in London. He was prev...

    Market moves    15 February 2019
  • Private placement

    Unusual tranched securitisation closed

    Fintex Capital has completed a structured finance transaction within its UK real estate lending busi...

    News    14 February 2019
  • Bank expands credit derivatives business

    Company hires and sector developments

    Credit trading expansion HSBC has hired Asgar Rahemtulla as a director in credit trading. In his n...

    Market moves    14 February 2019
  • Insurance firm expansion

    Sector hires and company developments

    Insurance firm expansion Nassau Re is expanding into additional specialty finance asset c...

    Market moves    12 February 2019
  • Juno 2 completed

    BNL closes NPL securitisation

    Banca Nazionale del Lavoro has completed a €968m (GBV) non-performing loan securitisation o...

    News    11 February 2019
  • RMAC claim

    Company hires and sector developments

    The RMAC Securities No. 1 Series 2006-NS1, 2006-NS2, 2006-NS3, 2006-NS4 and 2007-NS1 issuers have co...

    Market moves    8 February 2019