Asset backed finance - Revision history

Doug: Layout.

2024-02-06T03:42:43Z

Layout.

← Older revision		Revision as of 03:42, 6 February 2024
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	''Asset backed finance is often styled asset backed finance, asset based finance or asset-based finance. Some authors seek to differentiate 'asset based' from 'asset backed', but use of the terms in practice is less orderly than that.''		''Asset backed finance is often styled asset backed finance, asset based finance or asset-based finance. Some authors seek to differentiate 'asset based' from 'asset backed', but use of the terms in practice is less orderly than that.''

	Borrowing is generally secured by specified assets or bundles of assets which generate a regular series of cash flows. From the investor's point of view it is often called asset backed lending (ABL) (sometimes asset-backed lending, asset based lending/asset-based lending).

	~~Used in financial services the term commonly includes such underpinning~~ assets ~~as mortgage loans, consumer loans and car loans. Sometimes the originator~~ of ~~the financing ('producer') will sell the transaction to another firm or to~~ a ~~special purpose vehicle (SPV) that finances their acquisition by issuing securities (asset based securities or asset-based securities, ABS) to investors~~.		Borrowing is generally secured by specified assets or bundles of assets which generate a regular series of cash flows.

			From the investor's point of view it is often called asset backed lending (ABL) (sometimes asset-backed lending, asset based lending/asset-based lending).

	In financing non-financial, industrial and commercial firms, the underlying assets can be fixed assets (fixed capital) such as plant and equipment, motor vehicles, even real estate or current assets (sometimes called circulating capital) such as accounts receivable (debtors - that may be financed with or without recourse to 'borrower') and inventory (stock). While fixed asset transactions are usually tied to particular assets, working capital transactions are more normally on a revolving basis.
			Used in financial services the term commonly includes such underpinning assets as mortgage loans, consumer loans and car loans.

			Sometimes the originator of the financing ('producer') will sell the transaction to another firm or to a special purpose vehicle (SPV) that finances their acquisition by issuing securities (asset based securities or asset-based securities, ABS) to investors.


			In financing non-financial, industrial and commercial firms, the underlying assets can be fixed assets (fixed capital) such as plant and equipment, motor vehicles, even real estate or current assets (sometimes called circulating capital) such as accounts receivable (debtors - that may be financed with or without recourse to 'borrower') and inventory (stock).

			While fixed asset transactions are usually tied to particular assets, working capital transactions are more normally on a revolving basis.


	From the borrower's point of view, it is important to take account of the removal of assets which are the subject of the ABF transaction from the pool of unsecured assets available to support general, unsecured creditors and contingent creditors - including: unsecured bank lenders; suppliers; defined benefit pensions schemes; staff for wages, expenses, etc.; customers for warranty, service and damages in case of misrepresentation during sale or failure to meet specifications, safety standards, etc.; affected communities if the firm should cause pollution or other social damage; and so on.		From the borrower's point of view, it is important to take account of the removal of assets which are the subject of the ABF transaction from the pool of unsecured assets available to support general, unsecured creditors and contingent creditors - including: unsecured bank lenders; suppliers; defined benefit pensions schemes; staff for wages, expenses, etc.; customers for warranty, service and damages in case of misrepresentation during sale or failure to meet specifications, safety standards, etc.; affected communities if the firm should cause pollution or other social damage; and so on.

Doug: Add link.

2024-02-06T03:37:33Z

Add link.

← Older revision		Revision as of 03:37, 6 February 2024
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	==See also==		==See also==
			* [[Alternative Credit Council]] (ACC)
	* [[Asset backed securities]] (ABS)		* [[Asset backed securities]] (ABS)
	* [[Asset finance]]		* [[Asset finance]]
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	* [[UK Finance]]		* [[UK Finance]]

	~~[[Category:The_business_context]]~~
	[[Category:Corporate_finance]]		[[Category:Corporate_finance]]
			[[Category:Financial_products_and_markets]]
			[[Category:Identify_and_assess_risks]]
	[[Category:Investment]]		[[Category:Investment]]
	[[Category:Long_term_funding]]		[[Category:Long_term_funding]]
	~~[[Category:Identify_and_assess_risks]]~~
	[[Category:Manage_risks]]		[[Category:Manage_risks]]
	[[Category:~~Financial_products_and_markets~~]]		[[Category:The_business_context]]

imported>Doug Williamson: Mend link.

2022-06-26T11:48:27Z

Mend link.

← Older revision		Revision as of 11:48, 26 June 2022
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	==See also==		==See also==
	* [[~~ABS~~]]		* [[Asset backed securities]] (ABS)
	* [[Asset finance]]		* [[Asset finance]]
	* [[RBL]]		* [[RBL]]

imported>Doug Williamson: Update links.

2021-12-02T18:17:22Z

Update links.

← Older revision		Revision as of 18:17, 2 December 2021
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	==See also==		==See also==
	* [[ABFA]]
	* [[ABS]]		* [[ABS]]
	* [[Asset finance]]		* [[Asset finance]]
	* [[RBL]]		* [[RBL]]
	*[[Special purpose vehicle]]		*[[Special purpose vehicle]]
			* [[UK Finance]]

	[[Category:The_business_context]]		[[Category:The_business_context]]

imported>Doug Williamson: Expand second sentence. Source: Thomson Reuters webpage https://uk.practicallaw.thomsonreuters.com/7-583-2606?transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1

2019-12-30T12:34:32Z

Expand second sentence. Source: Thomson Reuters webpage https://uk.practicallaw.thomsonreuters.com/7-583-2606?transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1

← Older revision		Revision as of 12:34, 30 December 2019
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	''Asset backed finance is often styled asset backed finance, asset based finance or asset-based finance. Some authors seek to differentiate 'asset based' from 'asset backed', but use of the terms in practice is less orderly than that.''		''Asset backed finance is often styled asset backed finance, asset based finance or asset-based finance. Some authors seek to differentiate 'asset based' from 'asset backed', but use of the terms in practice is less orderly than that.''

	Borrowing is secured by specified assets or bundles of assets which generate a regular series of cash flows. From the investor's point of view it is often called asset backed lending (ABL) (sometimes asset-backed lending, asset based lending/asset-based lending).		Borrowing is generally secured by specified assets or bundles of assets which generate a regular series of cash flows. From the investor's point of view it is often called asset backed lending (ABL) (sometimes asset-backed lending, asset based lending/asset-based lending).

	Used in financial services the term commonly includes such underpinning assets as mortgage loans, consumer loans and car loans. Sometimes the originator of the financing ('producer') will sell the transaction to another firm or to a special purpose vehicle (SPV) that finances their acquisition by issuing securities (asset based securities or asset-based securities, ABS) to investors.		Used in financial services the term commonly includes such underpinning assets as mortgage loans, consumer loans and car loans. Sometimes the originator of the financing ('producer') will sell the transaction to another firm or to a special purpose vehicle (SPV) that finances their acquisition by issuing securities (asset based securities or asset-based securities, ABS) to investors.

imported>Doug Williamson: Classify page.

2019-12-30T12:14:50Z

Classify page.

@@ Line 19: / Line 19: @@
 * [[ABS]]
 * [[Asset finance]]
 *[[Special purpose vehicle]]

imported>Doug Williamson: Correct typo SPV.

2016-06-05T07:55:55Z

Correct typo SPV.

← Older revision		Revision as of 07:55, 5 June 2016
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	Borrowing is secured by specified assets or bundles of assets which generate a regular series of cash flows. From the investor's point of view it is often called asset backed lending (ABL) (sometimes asset-backed lending, asset based lending/asset-based lending).		Borrowing is secured by specified assets or bundles of assets which generate a regular series of cash flows. From the investor's point of view it is often called asset backed lending (ABL) (sometimes asset-backed lending, asset based lending/asset-based lending).

	Used in financial services the term commonly includes such underpinning assets as mortgage loans, consumer loans and car loans. Sometimes the originator of the financing ('producer') will sell the transaction to another firm or to a special purpose vehicle (~~SPF~~) that finances their acquisition by issuing securities (asset based securities or asset-based securities, ABS) to investors.		Used in financial services the term commonly includes such underpinning assets as mortgage loans, consumer loans and car loans. Sometimes the originator of the financing ('producer') will sell the transaction to another firm or to a special purpose vehicle (SPV) that finances their acquisition by issuing securities (asset based securities or asset-based securities, ABS) to investors.

imported>Doug Williamson: Layout.

2016-06-03T17:39:28Z

Layout.

← Older revision		Revision as of 17:39, 3 June 2016
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	(ABF).		(ABF).

	''~~Often~~ styled asset backed finance, asset based finance or asset-based finance. Some authors seek to differentiate 'asset based' from 'asset backed', but use of the terms in practice is less orderly than that.''		''Asset backed finance is often styled asset backed finance, asset based finance or asset-based finance. Some authors seek to differentiate 'asset based' from 'asset backed', but use of the terms in practice is less orderly than that.''

	Borrowing is secured by specified assets or bundles of assets which generate a regular series of cash flows. From the investor's point of view it is often called asset backed lending (ABL) (sometimes asset-backed lending, asset based lending/asset-based lending).		Borrowing is secured by specified assets or bundles of assets which generate a regular series of cash flows. From the investor's point of view it is often called asset backed lending (ABL) (sometimes asset-backed lending, asset based lending/asset-based lending).

imported>Doug Williamson: Layout.

2016-06-03T17:38:08Z

Layout.

← Older revision		Revision as of 17:38, 3 June 2016
Line 1:		Line 1:
	(ABF).		(ABF).

	[Often styled asset backed finance/asset based finance, asset-based finance. Some authors seek to differentiate asset based from ~~assed~~ backed, but use of the terms in practice is less orderly than that.]		''Often styled asset backed finance, asset based finance or asset-based finance. Some authors seek to differentiate 'asset based' from 'asset backed', but use of the terms in practice is less orderly than that.''

	Borrowing is secured by specified assets or bundles of assets which generate a regular series of cash flows. From the investor's point of view it is often called asset backed lending (ABL) (sometimes asset-backed lending, asset based lending/asset-based lending).		Borrowing is secured by specified assets or bundles of assets which generate a regular series of cash flows. From the investor's point of view it is often called asset backed lending (ABL) (sometimes asset-backed lending, asset based lending/asset-based lending).

imported>Doug Williamson: Layout.

2016-04-15T13:14:00Z

Layout.

← Older revision		Revision as of 13:14, 15 April 2016
Line 6:		Line 6:

	Used in financial services the term commonly includes such underpinning assets as mortgage loans, consumer loans and car loans. Sometimes the originator of the financing ('producer') will sell the transaction to another firm or to a special purpose vehicle (SPF) that finances their acquisition by issuing securities (asset based securities or asset-based securities, ABS) to investors.		Used in financial services the term commonly includes such underpinning assets as mortgage loans, consumer loans and car loans. Sometimes the originator of the financing ('producer') will sell the transaction to another firm or to a special purpose vehicle (SPF) that finances their acquisition by issuing securities (asset based securities or asset-based securities, ABS) to investors.


	In financing non-financial, industrial and commercial firms, the underlying assets can be fixed assets (fixed capital) such as plant and equipment, motor vehicles, even real estate or current assets (sometimes called circulating capital) such as accounts receivable (debtors - that may be financed with or without recourse to 'borrower') and inventory (stock). While fixed asset transactions are usually tied to particular assets, working capital transactions are more normally on a revolving basis.		In financing non-financial, industrial and commercial firms, the underlying assets can be fixed assets (fixed capital) such as plant and equipment, motor vehicles, even real estate or current assets (sometimes called circulating capital) such as accounts receivable (debtors - that may be financed with or without recourse to 'borrower') and inventory (stock). While fixed asset transactions are usually tied to particular assets, working capital transactions are more normally on a revolving basis.


	From the borrower's point of view, it is important to take account of the removal of assets which are the subject of the ABF transaction from the pool of unsecured assets available to support general, unsecured creditors and contingent creditors - including: unsecured bank lenders; suppliers; defined benefit pensions schemes; staff for wages, expenses, etc.; customers for warranty, service and damages in case of misrepresentation during sale or failure to meet specifications, safety standards, etc.; affected communities if the firm should cause pollution or other social damage; and so on.		From the borrower's point of view, it is important to take account of the removal of assets which are the subject of the ABF transaction from the pool of unsecured assets available to support general, unsecured creditors and contingent creditors - including: unsecured bank lenders; suppliers; defined benefit pensions schemes; staff for wages, expenses, etc.; customers for warranty, service and damages in case of misrepresentation during sale or failure to meet specifications, safety standards, etc.; affected communities if the firm should cause pollution or other social damage; and so on.