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.
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Job swaps weekly: Siepe follows international expansion with leadership team hires
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees structured debt and private credit fintech Siepe snapping up two senior executives from US Bank. Elsewhere, EF Hutton & Co has hired a structured finance veteran from Ziegler, while the EIF has named a new head of securitisation for south and west Europe.
CLO- and private-credit-focused software provider Siepe has hired .......
Market Moves 25 April 2025
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Northleaf and Ares back GoldState Music with US$500m facility
The new capital crescendo boosts GoldState's music rights ac...
GoldState Music, a leading music rights acquisition platform, has secured US$500m in strategic capital, including a structured capital facility co-led by Northleaf Capital Partners and Ares Management funds, alongside separately raised leverage. The private deal will support GoldState’s continued growth and the acquisition of traditional music assets, including catalogues by artists such as Alan Walker and Sheryl Crow.
“The transaction .......
News 24 April 2025
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Market participants give mixed response to ESAs' report on European securitisation regs
Risk retention changes among key concerns highlighted by industry insiders
As the European Commission prepares proposals on securitisation reform for its meeting in mid-June, industry experts have responded to the Joint Committee report on the functioning of the securitisation regulation with concern. The ESAs’ Article 44 Report, released in late March, is being welcomed with cautious optimism, with concerns around new risk retention .......
News 24 April 2025
European ABS stands firm amid volatility
European and UK ABS defy volatility with strong Q1 issuance,...
Despite growing geopolitical tensions, rate uncertainties and a spike in volatility toward the end of March, European and UK ABS have proven resilient, and in some areas, remarkably buoyant, according to monthly European and UK factsheets monitored by SCI.
TwentyFour AM Momentum Bond Fund’s managers report €11bn of issuance across ABS sectors during March, highlighting “a significant uptick” in consumer and auto .......
News 22 April 2025
Job swaps weekly: 400CM promotes five as investment strategy heads
Securitisation people moves and key promotions
This week’s round-up of job swaps sees 400 Capital Management (400CM) beef up its securitisation strategy team with a handful of promotions. Elsewhere, Ares Management Corporation has named a co-head of Europe for alternative credit, while Taylor Wessing has strengthened its banking and finance team.
400 Capital Management has announced five new heads of investment strategy. Portfolio manager Quinn .......
Market Moves 17 April 2025
Ratepay seals scalable BNPL securitisation
German white-label provider has closed its first STS-compliant ABS deal
Ratepay has completed its inaugural STS-compliant securitisation, raising €125m through a transaction backed by German and Austrian buy-now-pay-later (BNPL) receivables. The deal was arranged and financed by UniCredit Bank.
The transaction marks a strategic milestone for Ratepay, a Berlin-based white-label BNPL provider, as it seeks to scale its operations and diversify funding sources. The securitisation is backed by payment-on-invoice .......
News 16 April 2025
Third Coast and EJF show the way
Novel CRT true sale offers template for slimming CRE exposure
SRT Market Update 14 April 2025
Tariff tensions drive unease in European securitisation amid mounting volatility
CLOs, CMBS and SMEs flagged as first in line to feel the heat from Trump's trade war
Escalating trade tariffs from the second Trump administration are sending shockwaves through the global financial markets – and European structured finance is no exception. While immediate credit deterioration remains unlikely, the wheels of spread widening, shifting investor sentiment and heightened uncertainty are already in motion.
"It’s no secret that recent market turmoil has created quite a bit of .......
News 14 April 2025
ESG securitisation issuance regains momentum with illimity and Auxmoney transactions
Back-to-back deals point to growing sustainability-linked pipeline for 2025
European ESG securitisation appears to be regaining momentum, with illimity and Auxmoney finalising two transactions in as many days. The back-to-back deals reflect the renewed appetite for sustainability-linked ABS and suggest ESG-labelled issuance is firmly back on the agenda for 2025, following a rebound in activity through 2024 as macroeconomic stresses eased.
Italian .......
News 11 April 2025
Job swaps weekly: Bayview names co-heads for new fund finance investment business
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Bayview Asset Managementappointing two co-heads to lead its newly created fund finance investment business. Elsewhere, RiskSpan has appointed two to its advisory board as it ramps up its structured finance and private credit activity, while Mayer Brown has hired two former Kirkland & Ellis partners in its US structured finance .......
Market Moves 11 April 2025
Litigation finance venture debuts amid surging claims market
New JV targets overlooked SME and consumer litigation market...
Litigation finance is entering a new phase of maturity, with funding shifting from opportunistic, one-off cases towards platform-based, scalable models. Capitalising on this shift, MDPG Advisory founder Matthew Gwynne and S&C Capital founder Edwin Harrap have launched Litigation Capital Solutions (LCS), a new joint venture aiming to open the doors of legal finance to underserved segments, .......
News 11 April 2025
Janus Henderson and Guardian form partnership for public fixed income portfolio
Deal sees asset manager overseeing US$45bn portfolio with insurer investing US$400m of seed capital
Janus Henderson Group and the Guardian Life Insurance Company of America have formed a strategic partnership, in which Janus Henderson will become the insurance company’s investment grade public fixed income asset manager. The transaction is expected to close at the end of the second quarter of 2025 and will .......
News 9 April 2025
ABF key pillar in AXA IM Alts' new evergreen private credit strategy
Christophe Fritsch, global head of alternative credit at AXA IM Alts, answers SCI's questions
Global alternative investment firm AXA IM Alts has made ABF a cornerstone of its newly launched diversified evergreen private credit strategy. Designed for the private wealth segment, the strategy will invest across the credit spectrum, from ABF to direct lending, aiming to generate long-term recurring income.
Christophe Fritsch, global head of alternative credit at AXA IM .......
The Structured Credit Interview 9 April 2025
Esoterics gather steam in APAC securitisation market
Demand for new asset classes could bring rapid expansion of securitisation in region
Traditional asset-backed securities in the Asia Pacific (APAC) region could become overshadowed by emerging asset classes and new players, as the demand for esoteric investments increases.
The securitisation market in the Asia Pacific (APAC) region is well stablished, particularly in countries such as China, Australia, South Korea, and Japan, where annual issuance reaches billions of dollars. With China .......
News Analysis 7 April 2025
Job swaps weekly: KBRA head of CMBS surveillance and research retires
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees KBRA naming a successor to outgoing head of CMBS surveillance and research Roy Chun, who is to retire. Elsewhere, Jefferies has named a new fixed income chief risk officer, while and MDPG Advisory director and an S&C Capital founder have formed a new London-based litigation finance and advisory .......
Market Moves 4 April 2025
ESG securitisation issuance rebounds amid broader market recovery
Soaring 2024 volumes in ESG ABS follow two sluggish years
Europe's ESG securitisation market is showing signs of revival, bouncing back in 2024 after two challenging years for the wider fixed income universe. Total ESG-labelled securitisation issuance reached €5.5bn, up 177% from 2023, according to AFME data. However, while the figures reflect some growing momentum, they remain modest compared to other corners .......
News Analysis 3 April 2025
SCI in Focus: Securitisation and private credit in lockstep for Europe's data centre future
Experts weigh in on public versus private deals, geopolitica...
As Europe's data centre market continues to evolve, industry insiders say the continent will likely emerge as a diversification play alongside the US, with multiple European countries on the radar. Private credit and securitisation are both likely to play increasingly important roles in the build-out of the market.
According to Darrell Purcell, director EMEA structured .......
News Analysis 2 April 2025
Standardisation key to ABF evolution
Technology driving the 'best outcome' for borrowers
The ability to be nimble is proving to be a competitive edge in the burgeoning ABF market. Participants in a recent SCI webinar on private credit highlighted the important role data and technology are playing in the evolution of this sector.
“Our goal is to double or triple our AUM, without the headcount growing commensurately,” said News 2 April 2025
Job swaps weekly: Morgan Lewis snaps up former SEC lawyer
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Morgan Lewis hiring a structured finance specialist and former SEC special counsel as partner. Elsewhere, Marathon Asset Management has promoted a long-standing senior portfolio manager to partner, while Close Brothers Property Finance has added two senior professionals to its new structured finance team in London.
Morgan Lewis has hired the .......
Market Moves 28 March 2025