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.

  • 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

  • SRT disclosures reviewed (UPDATED)

    Pillar 3 survey underlines Santander's dominance

    News 28 March 2025

  • Lincoln Financial preps pair of private-market funds

    Insurer aims to offer retail investors exposure to private credit, ABF and IP royalties by late 2025

    Lincoln Financial is preparing to launch two new evergreen funds in partnership with Bain Capital and Partners Group by late 2025. The funds will offer retail investors access to high-barrier sectors, including asset-backed finance (ABF) and royalty-based investments, traditionally limited to institutional investors. By tapping into its network of 60,000 financial advisers, the life insurer aims to offer individual .......

    News 28 March 2025

  • SCI in Focus: Data centre securitisation - ESG risk or green opportunity?

    Growing appetite for deals brings environmental commitments...

    As data centre securitisation gains traction, some of the most prominent voices in the ESG movement are now at the forefront of this growing market. While the industry’s energy intensity may seem at odds with sustainability principles, ESG remains a fundamental consideration in the structured finance business – though now less prominent as a marketing tool. 

    News Analysis 28 March 2025

  • Firstmac's 'Eagle' spreads wings in commercial SMSF market

    A$1bn transaction sees mortgage lender turn to international investors in expansion of programme

    Firstmac priced its largest RMBS deal to date earlier this month, in a deal that saw the mortgage lender expanding its investor base overseas. The A$1bn Australian prime RMBS transaction – Firstmac Mortgage Funding Trust No 4 Series Eagle No 5 – was backed by self-managed super fund (SMSF) loans and upsized from A$500m due to strong .......

    News 27 March 2025

  • Insurer appetite for SRTs on the rise

    IACPM survey shows substantial growth of unfunded protection

    Insurer provision of unfunded protection on tranches of SRT transactions has increased significantly year-on-year. The number of protections sold rose to 82 new subscriptions in 2024, versus 45 the previous year, according to the IACPM’s latest Global SRT Insurance Survey.

    Respondents insured €2.8bn of European SRT transactions last year, compared to €1.2bn in 2023. The average insured amount .......

    News 27 March 2025

  • SCI In Conversation Podcast: Jason Smilovitz and Midroog's Moty Citrin (part 2)

    We discuss the hottest topics in securitisation today...

    In the second part of this episode of the SCI In Conversation podcast, SCI’s Selvaggia Cataldi continues her discussion about Israel’s securitisation market with Moty Citrin, head of financial institutions and structured finance at Moody’s subsidiary Midroog, and independent senior securitisation consultant Jason Smilovitz.

    Citrin and Smilovitz discuss the impact of the country's recent legislative changes, investor sentiment, market liquidity, .......

    News Analysis 27 March 2025

  • Finance Ireland's second auto ABS signals growing EV momentum

    Latest deal strengthens issuer's ABS framework, boosts investor demand, and drives EV exposure

    Finance Ireland has recently priced its second auto ABS transaction, marking another milestone in its securitisation program. Following its debut deal in October 2023, the latest issuance reflects refinements based on investor feedback and past performance, further solidifying the issuer's presence in the European ABS market.

    The structuring of the new deal closely mirrors Finance Ireland’s previous auto .......

    News Analysis 25 March 2025

  • Marketplace lending entering 'cautious phase'

    Castlelake and PGIM warn of cracks in MPL sector as fintech models face recalibration

    Marketplace lenders are entering a more cautious phase in 2025 as the rapid evolution of their business models and loosening credit standards appear to be dampening investor confidence. While private credit firms continue capitalising on falling senior financing costs and sustained demand for non-bank lending, concerns are mounting around potential impacts on the MPL segment. 

    "As marketplace lending .......

    News 24 March 2025

  • Job swaps weekly: Gandy returns to the SRT fold

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees SRT veteran Steve Gandy return to the industry as a board member at an SRT-focused fintech business. Elsewhere, Simpson Thacher & Bartlett has appointed a New-York-based securitisation-focused partner, while Trafigura Group has named a new global head of structured finance.

    Iconicchain, a Finnish fintech specialising in SRT services for issuers, .......

    Market Moves 21 March 2025

  • SCI In Conversation Podcast: Moty Citrin, Midroog, and Jason Smilovitz, independent consultant

    We discuss the hottest topics in securitisation today...

    In this episode of the SCI In Conversation podcast, SCI’s Selvaggia Cataldi speaks to Moty Citrin, head of financial institutions and structured finance at Moody’s subsidiary Midroog, and independent senior securitisation consultant Jason Smilovitz about the evolution of Israel’s securitisation market. In light of a new law aligning the country with global standards, Citrin and Smilovitz discuss how the legislative .......

    News Analysis 21 March 2025

  • European and UK ABS robust in February amid diverging outlooks

    European and UK ABS and MBS markets maintain their...

    February proved to be a strong month for European and UK ABS and MBS markets, with spreads tightening and issuance levels exceeding the previous year, according to monthly fact-sheets monitored by SCI.

    Aegon reports that European ABS markets performed strongly despite broader market volatility, noting that non-senior tranches saw higher demand than senior tranches. TwentyFour echoes this, stating that mezzanine ABS .......

    News 20 March 2025

  • New auto loan deal for Huntington

    Midwest lender comes back to reg cap market after 2024 debut

    News 19 March 2025

  • UK structured credit hiring to soar in 2025

    Investor appetite fuels hiring boom across ABF, consumer ABS, and esoteric ABS

    The UK structured credit market is poised for a hiring boom in 2025, driven by rising demand across ABF, consumer ABS, and esoteric ABS. Investor appetite for yield and high compensation packages in these sectors are fuelling this growth, according to RCQ Associates’ latest report, which forecasts sustained hiring momentum throughout the year, following a sharp rebound in the .......

    News 19 March 2025

  • TwentyFour rides Aussie ABS wave to new highs

    Australia's securitisation market soared to A$80.3bn in 2024...

    A new report from TwentyFour Asset Management underscores the rapid transformation of the Australian securitisation market, which reached a record-high issuance of A$80.3bn (€46.6bn) in 2024. According to the firm, strong growth across all sectors, particularly in RMBS, has cemented Australia’s position as an increasingly attractive market for global investors.

    "Non-bank lenders significantly increased RMBS issuance, benefiting .......

    News 18 March 2025

  • UAE securitisation market boost

    Cross-border forward flow transaction could catalyse ABF growth in the Middle East

    Gargash Group’s Deem Finance, a UAE-based financial services firm, has secured an up-to-US$400m forward flow securitisation deal with JPMorgan as senior lender and Daman Investments as financial advisor. Due to its cross-border nature, the transaction presented unique complexities.

    “The underlying receivables are dirham-based, generated within the UAE, while the private ABS funding is cross-border and denominated in US dollars. .......

    News Analysis 17 March 2025

  • Accelerating synthetics simplification and standardisation

    Mayer Brown lawyers outline the key points and eligibility c...

    Following the start of development work on an accelerated procedure for the regulatory recognition of significant risk transfer (SRT) securitisations last year, the ECB last month published guidance addressed to significant institutions1 (SIs or SI) for certain simpler and more standardised traditional and synthetic securitisations. The new SRT Fast-Track process is currently being tested by the ECB .......

    Talking Point 17 March 2025

  • Job swaps weekly: Wellington launches private real estate credit platform

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Wellington Management make a number of appointments to its newly launched private real estate credit platform. Elsewhere, KBRA Analytics has named a new chief strategy officer, while Marsh has appointed a head of political risk and structured credit.

    Wellington Management has expanded its private investing capabilities with the formation of .......

    Market Moves 14 March 2025
×