/> Issue Type Glossary
ABS AssetsABSThe assets in the portfolio are, or can be, asset-backed securities.
Aircraft FinanceAIRAircraft hire-purchase or lease receivables
Asset Backed Commercial PaperABCPAsset-Backed Commercial Paper …. a bankruptcy-remote SPV, or conduit, that issues commercial paper and uses the proceeds to purchase various types of assets, either through asset purchase or secured lending transactions
Automobile Loans and/or LeasesAUTOLoans or Leases provided for the borrower to purchase or lease a new or used motor vehicle
Buy-To-LetBTLBuy-to-let. The issue includes at least some BTL mortgage loans..
Catastrophe BondCATA high-yield debt instrument that is usually insurance linked and meant to raise money in case of a natural disaster catastrophe. They usually carry a special condition that states that if the issuer (insurance or reinsurance company) suffers a loss from a particular pre-defined catastrophe, then the issuer's obligation to pay interest and/or repay the principal is either deferred or completely forgiven. Reinsurance companies issue them in order to protect their own balance sheets in the event of large scale payouts such as those caused by earthquakes or typhoons. Catastrophe bonds are usually issued via an SPV, where the SPV will keep the bondholders' money and pay them interest. It will also usually receive a premium from the insured. In the event of the "catastrophe" occurring the bondholders lose their money and it is used to pay the insured.
Cedulas HipotecariasCHSpanish Covered Bonds, issued by Spanish credit institutions (banks, savings banks and coop banks) backed by the total portfolio of mortgage loans of the institution, where the holders have a priority security claim over the Issuer’s entire mortgage loan book. CH issuances are controlled by the Spanish supervisory authorities, and the maximum amount of outstanding CHs that a credit institution is allowed to issue may not exceed 80% of the Cover Pool – providing for a minimum 25% over-collateralisation. If this limit is breached, the sponsor bank must restore the limit within 3 months
Cedulas TerritorialesCTSpanish covered bonds issued by Spanish credit institutions (banks, savings banks and coop banks) and European Economic Area credit institutions. The bonds are mandatorily over-collateralized and the issuer cannot issue CTs in an amount greater than 70% of the outstanding value of all qualifying loans
Central Government ReceivablesGOVCENTThe underlying assets were originated by a Government or sovereign entity (eg Kingdom of Belgium, The Hellenic Republic). They may, or may not carry a Sovereign guarantee
Collateralised Commodity ObligationCCOCollateralised Commodity Obligations.. are credit structures where the risk is linked to the performance of an underlying portfolio of commodities.
Collateralised Debt ObligationsCDOCollateralized Debt Obligation….. a financial instrument that allows various debt assets to be securitized into one or more classes of notes
Collateralised Fund ObligationCFOCollateralised Fund Obligation…where the underlying collateral is usually a fund of hedge funds.
Collateralised Loan ObligationCLOA debt security backed by a pool of commercial loans (which can be secured or unsecured)
Collateralised Swap ObligationCSOIssuance backed by receivables from a portfolio of swap agreements
Commercial MortgagesCMBSIssuance backed by a portfolio of Commercial Mortgages.
Commercial Real EstateCRECRE CDOs are essentially, more complex and riskier versions of CMBS, where the investor is offered higher rates of return. Typically they are pools of loans ( subordinate CMBS and REIT debt) made on commercial properties divided into tranches with varying yields and levels of risk.
Constant Proportion Debt ObligationCPDOConstant Proportion Debt Obligation….. is normally backed by an investment in an index of debt securities (CDS indices), or could be deal specific. As the index is periodically rolled, the SPV must buy protection on the old index, and sell protection on the new index.
Consumer LoansCONConsumer Loans. The receivables are be loans granted to consumers for a wide variety of purposes: white goods; furniture; general household expense; etc
Covered BondCOVERCovered Bond. The assets backing the particular issue remain on the balance-sheet of the issuer (and asset originator) and have been "ring-fenced".
Credit Card ReceivablesCARDCredit-card receivables
DealershipsDEALERBacked by receivables on loans advanced to car dealerships to set up the franchise, and to finance the dealers’ inventories of new and used cars, and spare parts.
Debt Issuance ProgrammeDIPDebt Issuance Programme, a Master document, which subsequent tranches & issues can be referenced to.
Distressed AssetsDISTR
Diversified Payment RightsDPRDiversified Payments Rights. The issue is secured against future (foreign currency) remittances via the originator's international operations.
ElectricityELECThe cash-flow is derived from an electricity generating company
Equipment FinanceEQUIPlease & rental contracts (usually corporate) on construction and heavy equipment.
Future FlowFFOFuture flow obligations….. which are backed by receivables from the future processing of payments received by financial institutions.
Government RelatedGOVThe underlying assets were originated by a Government-owned/related or sovereign-owned/related entity (e.g. future receipts to EU members under the Community Support Framework, the Secretary of State for the Environment, Transport and the Regions ). They may, or may not carry a Sovereign guarantee.
Green residential mortgagesGREENApplies to transactions which meet “green” or environmental criteria, as defined in the underlying transaction documents
Healthcare ReceivablesHEALTHreceivables from public & private payments to the healthcare industry
High YieldHYIELD
Hybrid CapitalHYBRID
HypothekenpfandbriefHYPFHypotheken Pfandbrief. German mortgage-backed Covered Bonds
Insurance ReceivablesINRECVThe receivables are insurance-related contracts.
JumboJUMBOCovered Bond Issuance greater than 1 billion Euros
lettres de gage hypothecairesLGHLuxemburg-issuer Covered Bonds. Issuers have to be credit institutions with a specialist bank licence, where the bank’s principal activities are limited to mortgage lending and public sector financing
Loan AssetsLOAN
Local Government ReceivablesGOVLOCThe underlying assets are either local-government owned, or the cash flow to service the issue is derived from a local government entity (eg Regional Government of Sicily) .
Master Trust IssuanceMTIAn issuance event from a Master Trust Programme. Each series of issuance will consist of one or more classes of notes. One or more series and class (or sub-class) of notes may be issued and outstanding at any one time.
Master Trust ProgrammeMTPA note programme with a revolving pool of receivables (primarily residential and other consumer loans), where the issuer may from time to time issue various classes of notes in one or more series. The proceeds of each series are used to purchase a portion of the receivables from the originator. Each series will consist of one or more classes of notes. One or more series and class (or sub-class) of notes may be issued and outstanding at any one time.
Medium Term NoteMTN
Mixed AssetsMIXED
Mixed LeasesLEASELease contract receivables from a variety of sources eg aircraft, shipping, equipment
Monoline InsuredMONOMonoline insured. The issue has at least one tranche where the output cashflow is guaranteed by one of the recognised monoline bond insurers
Multi BorrowerMULTI
Non-ConformingNON-CNon-conforming loan, which is a loan that fails to meet the usual banking criteria for funding. These NON-CLs can include: borrowers with CCJs; self-employed with limited credit history; former bankruptees, high LTVs.
Non-Performing LoansNPLNon-performing Loans
obbligazioni bancarie garantiteOBGItalian mortgage-backed Covered Bonds
Obligations a l'HabitatOLHObligations à l'Habitat are French housing financing bonds, issued by housing financing companies (société de financement à l'habitat) and can be secured by either mortgages or guaranteed loans without any restrictions. Such Obligations à l'Habitat will be issued by a new type of credit institution called "Sociétés de Financement à l'Habitat" whose exclusive purpose would be to grant or finance home loans and to issue home bonds. Although the legal regime for OFs and OHs is very similar, the intention is to provide investors with an instrument as efficient and as secured as the OFs but without applying some of the more onerous regulatory constraints that currently apply to SCFs
Obligations FoncieresOFObligations Foncieres. French Covered Bonds.
Obligazioni Bancarie GarantiteOBGItalian covered bonds
Obrigacoes HipotecariasOHObrigacoes Hipotecaries. Portugese mortgage-backed Covered Bonds.
Obrigacoes HipotecariasOH
Obrigacoes sobre o Sector PublicoOSPPortugese public-sector backed Covered Bonds.
Offentlicher PfandbriefOEPFOffentlicher Pfandbrief. German public-backed Covered Bonds.
Peer to PeerP2PAlso known as CrowdLending. The lending money to individuals or businesses (usually through online services) that match lenders directly with borrowers. Usually, peer-to-peer loans are unsecured personal loans, though some of the largest amounts are lent to businesses. In the UK, since April 2014 the peer-to-peer lending industry has been regulated by the Financial Conduct Authority.
Pension ReceivablesPENRECVThe receivables are pension-related.
PrimePRIMEOnly applies to residential mortgage issuance, which conforms to a conservative lending policy: adequate lender documentation, acceptable LTV, good credit history for all mortgagees.
Pub SecuritisationsPUBPublic House / Brewery chain receivables
Public Finance InitiativePFIPrivate Finance Initiative… provides a way of funding major capital investments, without immediate recourse to the public purse. They usually involve private consortia, (large construction firms etc), contracted to design, build, and in many cases manage new projects (hospitals, roads, schools etc)
RailRAILIssuance backed by rail services, or franchise payment receivables
Real Estate Investment TrustREITReal Estate Investment Trust.
Repackaged AssetsREPACK
Residential MortgagesRMBSIssuance backed by a portfolio of Residential Mortgages.
RM-Equity ReleaseEQRa range of products letting you access the equity (cash) tied up in your home if you are over the age of 55.
Sakerstallda ObligationerSKOBLSakerstalida Obligationer. Swedish Covered Bonds
Single BorrowerSINGLE
SIV-LiteSIVLSIV-Lite Much more highly leveraged than a traditional SIV. SIV-Lites have equity leverage of perhaps 40-70x , depending on the collateral.
SME AssetsSMESmall & Medium Enterprise Loans
Social HousingSOCIALResidential housing loan receivables, where the loans have been awarded to Housing Associations, or at non-market conditions.
Student AccommodationSTACCA securitisation where the relevant cash-flow to service the transaction is derived from rental income from campus-type student accommodation provided primarily by colleges and Universities (usually via 3rd parties) to under & post graduate students.
Student LoansSTUDENTLoans provided to students for educational, living, and housing expenses
Sub-PrimeSPonly applies to residential mortage issuance. one or more mortgagees has a certified bad credit history
SukukSUKUKthe issue displays the characteristics, and the methodology of an Islamic finance instrument.
Sukuk IjarahSUK_IJAMalaysian Sukuk-compliant issuance. The stand-alone assets are identified on the balance sheet. The leased assets (aircraft, equipment, shipping etc) can be both fixed and floating
Sukuk MusyarakahSUK_MUSMalaysian Sukuk-compliant issuance. A Musyarakah arrangement involves a partnership between various parties that provide capital towards the financing of the business venture. While profits are shared based on an agreed ratio, losses are shared on the basis of equity participation.
SyntheticSYNThe owner of the assets has transferred the credit risk to the capital markets via the bond issue. However, actual ownership of the reference obligations (which can be static, or be replenished) remains with the protection buyer.
TelecomsTELCOMThe issuer, or provider of the assets is a Telecoms company. The cash-flow is from a Telecomm company
Toll BridgeBRIDGEIssuance backed by toll bridge (or related) receivables.
Toll RoadROADIssuance backed by toll road or other road based receivables
Trade ReceivablesTRADETrade Receivables ….. the sale of a stock of receivables (diamonds, oil, etc) to a specially created legal entity, and the issuing of debt securities by this entity.
UtilitiesUTILThe cash-flow is derived from the Utility company, either electricity, gas, or water
WaterWATERThe cash-flow is derived from a water company.
Whole BusinessWHOLEWhole Business Securitisation transactions are structured based on the residual cash flows of an operating business. Whole Business Securitisations may be likened to a securitised Leveraged Buy Out – where, it is the value of a business, reflected by the residual cash flows of the business, which is being securitized.