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.

  • Oaktree's ABF pipeline 'exploding'

    After fielding over 300 deals worth US$20bn since 2023, the...

    Oaktree Capital Management is experiencing an exponential increase in asset-backed finance (ABF) deal flow, with more than 300 unique transactions totalling nearly US$20bn crossing its desk since May 2023. The surge - driven by a shifting bank posture, public market dislocation and the firm’s push into unrated ABF opportunities - shows no signs of slowing.

    “Our pipeline is .......

    The Structured Credit Interview 16 June 2025

  • Australian ABS undergoing period of transition

    Bank retreat diversifying securitisation landscape

    The Australian ABS market is undergoing a period of transition, driven by reduced activity from major banks, growing participation from non-bank lenders and a slow but steady evolution in green securitisation. These themes were discussed during the Australian Securitisation Forum’s recent London Investor Seminar, during which speakers discussed funding dynamics, environmental risk considerations and consumer resilience amid tightening financial .......

    News 16 June 2025

  • Job swaps weekly: RenaissanceRe promotes senior SRT executives

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees RenaissanceRe elevating two SRT leaders in a round of senior executive promotions. Elsewhere, Bayview Asset Management is building out its ABF capabilities with the addition of a senior advisor in its insurance asset management business, while AlbaCore Capital Group has appointed an md and portfolio manager for its European CLO platform. 

    Market Moves 13 June 2025

  • DeFi securitisation breakthrough?

    Figure Markets launches first blockchain-based RWA credit facility

    Figure Markets has launched a US$15m senior lending facility, initially backed by home equity lines of credit (HELOCs) originated by Figure Lending, marking the first real-world assets (RWAs) financing on a decentralised finance (DeFi) marketplace. The facility enables institutional and retail investors to lend on equal terms in a fully decentralised system.

    “In a nutshell, the innovative aspect .......

    News Analysis 12 June 2025

  • Views from Barcelona: EC vote, positive CLO outlook and fintech considerations

    Global ABS participants anticipate smoother sailing ahead fo...

    Securitisation markets may benefit from increased stability in the months ahead, according to speakers at FT Live Fixed Income Events' Global ABS conference. Practitioners broadly expressed hope that turbulence surrounding Trump’s Liberation Day tariffs was easing, and looked ahead as the European Commission prepares to vote on the joint committee proposals for EU securitisation regulation.

    The new proposed .......

    News 11 June 2025

  • Views from Barcelona: EC capital proposal could be 'transformational'

    The SRT market continues to gather momentum, with 2025 shaping up to be a year of growth and diversification, according to speakers at AFME and FT Live’s Global ABS conference. ‘De-Risky Business: SRT Market Overview’ panellists pointed to a broadening issuer base, surging investor demand and regulatory developments as key drivers behind the sector’s evolution.

    “SRT is no .......

    News 11 June 2025

  • Views from Barcelona: ABS held its ground amid April chaos

    The European ABS market has demonstrated superior performance compared to other fixed income asset classes, according to speakers at FT Live Fixed Income Events’ Global ABS conference. During the ‘Stability among chaos: capital markets forecast’ panel, they noted how the ABS market navigated the uncertainty and shock of April and ‘Liberation Day’.

    “European ABS performed well versus alternatives .......

    News 10 June 2025

  • SCI In Conversation Podcast: Christophe Fritsch, AXA IM Alts

    We discuss the hottest topics in securitisation today...

    In this episode of SCI In Conversation, Christophe Fritsch, global head of alternative credit at AXA IM Alts, speaks with associate editor Marta Canini about the firm’s new diversified evergreen private credit strategy. Fritsch also discusses rising institutional and retail demand, the impact of ELTIF 2.0, sourcing in a crowded market, and why 2025 could be a defining year for .......

    News Analysis 10 June 2025

  • Job swaps weekly: Howden acquires Granular Investments to bolster CRT capabilities

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Howden make a major acquisition to strengthen its European credit risk transfer capabilities, which will see two vendor founders work closely with its global credit and political risk team. Elsewhere, the TCW Group has named three co-portfolio managers to lead its newly launched private asset-backed finance interval fund, while a former .......

    Market Moves 6 June 2025

  • European DataWarehouse expands to India with Bangalore office

    New hub to serve global clients and develop securitisation products

    European DataWarehouse (EDW) has started its operations in India by opening a new office in Bangalore. The goal of the company’s new centre for IT operations is to provide round-the-clock service for clients operating in non-European time zones, with software development and support for EDW’s flagship platforms on securitisation. 

    Dr Christian Thun, ceo at EDW, tells .......

    News 4 June 2025

  • BC Partners to explore insurer-led strategy as private credit demand soars

    With US$1bn deployed from its latest fund, BC Partners ramps...

    Nearly two months after closing its third Special Opportunities Fund (SOF III) at US$1.4bn, BC Partners has deployed almost US$1bn of capital and is now exploring an insurance-focused, permanent-capital strategy alongside a growing retail distribution push.

    “We’re exploring new strategies, one of which could involve a more permanent capital base, potentially through an insurance channel. That’s something we’re .......

    News 3 June 2025

  • SCI In Conversation Podcast: Scott Frame, Bank Policy Institute

    We discuss the hottest topics in securitisation today...

    In this episode of SCI In Conversation, Scott Frame, senior vice president and deputy head of research, at the Bank Policy Institute in Washington DC, talks to US editor Simon Boughey about how post-GFC regulation capped growth in the securitisation market and what types of beneficial changes might emanate from the current administration. 

    This episode can be accessed  News Analysis 30 May 2025

  • Job swaps weekly: Lane42 names senior execs for new strategy launch

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Lane42 Investment Partners naming six senior executives to spearhead the launch of its capital opportunities investment strategy. Elsewhere, K&L Gates has promoted a structured finance partner to global managing partner, while DunPort Capital Management has followed the launch of its strategic partnership with Vertis Capital Partners by making three senior leadership .......

    Market Moves 30 May 2025

  • EC proposes 'serious' adjustments to the CRR and SecReg

    Leaked drafts point towards 'consistent and predictable' SRT framework

    This week, two draft documents from the European Commission (EC) regarding proposed adjustments to the CRR and Securitisation Regulation were leaked. The picture that has emerged thus far is largely positive. Nevertheless, market sources warn that the devil remains in the detail.  

    The prevailing regulatory atmosphere in Europe is one of simplifying and reducing the burden for both .......

    News 29 May 2025

  • Crayhill eyes expansion after closing US$1.3bn ABF fund

    ABF platform to scale with fresh capital and a growing pipel...

    Crayhill Capital Management is seeking to expand its horizons after closing its third ABF fund at US$1.31bn last month, including US$162m in co-invest commitments. The close marks a major milestone amid rising insurer demand for long-duration, yield-generating assets that is driving increased institutional interest across the ABF space.

    "Achieving the milestone of raising over US$1bn with repeat investors .......

    The Structured Credit Interview 29 May 2025

  • Agency mortgage paper looks good, says new report

    Asset manager spotlights unusually attractive risk profile for MBS

    News Analysis 28 May 2025

  • Reed Smith builds structured finance practice

    New partner to spearhead push in esoterics and others

    Market Moves 27 May 2025

  • Fitch faces backlash from KBRA over use of retracted NAIC data

    Dispute sparks debate over ratings credibility in booming private credit market

    KBRA has publicly criticised rival agency Fitch Ratings for publishing a report on Monday that leaned on a dataset the National Association of Insurance Commissioners (NAIC) had discredited and withdrawn in August 2024. The NAIC’s Securities Valuation Office (SVO) pulled its report due to a flawed methodology as it was based on a sample of just 109 .......

    News 23 May 2025

  • 'Strong comeback' for European ABS market

    Managers highlight mezz demand amid Liberation Day volatility

    The European and UK ABS/MBS market was last month dominated by volatility from the US Liberation Day tariff announcements, which significantly disrupted global trade and financial markets. Monthly fund factsheets monitored by SCI suggest that asset managers are repositioning to mitigate losses from anticipated macroeconomic impacts and identifying where demand is now concentrated.

    The wider macroeconomic issues tested .......

    News 23 May 2025

  • Job swaps weekly: LGT names leadership team for European CLO platform

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees LGT Capital Partners making senior appointments to support the launch of dedicated European CLO management platform Legato. Elsewhere, Reed Smith has hired a new partner to serve as head of its Asia-Pacific corporate trust and agency practice, while Ogier has recruited a counsel in its Luxembourg-based banking and finance team. 

    Market Moves 23 May 2025

  • Private credit eyes master trust potential

    ABF convergence continues as securitisation tools tipped for evergreen funds

    The lines between fund finance and structured credit are continuing to blur, with growing recognition of the potential for tools long used in securitisation markets to be incorporated within fund finance. The latest example is the potential of securitisation-style master trust frameworks to structure rated notes backed by evergreen private credit funds. 

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