Asset-Backed Securities (ABS) Trust Services

Specialized, agile ABS trust solutions

No matter how complex your ABS transactions, UMB’s highly experienced, tenured team is here to support you. We understand the intricacies of various structures and offer solutions tailored to fit your needs.

Niche experience

Our dedicated specialty trust and agency solutions team is experienced in every aspect of complex and unique ABS transactions, industries, and agent services.

Dedicated relationship manager

You have direct access to your UMB relationship manager when you need it. Because we get to know your organization, we can partner with you every step of the way.

Time-tested, reliable and independent

UMB has been a dependable provider of corporate trust services for more than 75 years. UMB is a nationally recognized and ranked provider of bond trustee and agency services to the corporate and municipal marketplaces.

Schedule a consultation with a UMB Corporate Trust team member

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Sophisticated ABS Services

The breadth and depth of our ABS services allows us to support your organization at every level.

Our ABS solutions include:

Auto loans/leases
Unsecured consumer loans
Student loans
Credit cards
PACE/Solar
Cell tower leases
Equipment leases
Structured settlements
Merchant cash advance
Esoteric assets

The UMB team can serve as your:

Indenture trustee
Owner trustee
Delaware statutory trustee
Depository Trust Company (DTC) settlement agent
International/cross-border agent
Escrow agent
Verification agent
Document custody
Paying agent and registrar
Account bank
Cash management
Calculation and tax agent
Back-up servicer

FEATURED INSIGHTS

Bond trustees and paying agents: What they are and what they do

Bond trustee services are critical to corporate and municipal marketplaces. We explain the role of a trustee through the stages of a bond issuance.

FEATURED INSIGHTS

Auto dealers: Is your reinsurance “B” account working for you?

Auto dealers participate in reinsurance programs to generate additional profit streams beyond their sales and service operations.

Questions about asset-backed securities (ABS)? UMB has answers.

What is an asset-backed security (ABS) and asset-backed securitization?

An asset-backed security (ABS) is a type of debt investment tool in which a pool of combined assets serves as collateral. Typically, the pooled assets used for an ABS include those that generate cash flow from debt, including home or auto loans, student loans, or credit card balances. The process of pooling those assets is called securitization.

An ABS is a type of bond and pays income over a set amount of time, until that bond reaches maturity. It can be an interest income-generating alternative to other debt investment tools, such as corporate bonds or bond funds. UMB offers ABS trust services. For more information, contact the UMB asset-backed securities team.

What are the benefits of a Delaware trust?

Historically, Delaware has been a desirable jurisdiction in which to establish statutory trusts. The state has flexible trust and tax laws, so trusts established in Delaware benefit from tax savings, asset protection, investment flexibility, greater control over terms, and quick, confidential judicial settlements.

UMB offers Delaware Statutory Trust services through its subsidiary UMB Delaware Inc. in Wilmington, Delaware. For more information, contact UMB’s Delaware Trust Services.

To learn more about the ABS industry, read this helpful UMB blog on the role of an indenture trustee in an ABS deal.

What are escrow agency services?

An escrow agent is a person or entity that holds property in trust for a third party while a transaction is finalized or a disagreement is resolved. Typically, a financial institution provides the escrow agent services and can hold assets, invest funds, handle tax reporting and manage distributions on behalf of the organization it represent

An ideal escrow agent has a comprehensive team of advisors working on behalf of its client. This includes in-house attorneys and a specialized relationship managers experienced in a broad range of corporate transactions, including mergers and acquisitions, capital raise or litigation settlements.

UMB is a nationally recognized and ranked provider of corporate trust and escrow services. For more information, please contact a UMB Corporate Trust representative.

What is the role of a paying agent?

A paying agent collects and distributes the principal and interest payments on the bonds. Unlike a trustee, a paying agent doesn’t have the ability to enforce the bond payment obligations. If there’s a paying agent but no bond trustee, there’s no independent party available to protect the rights of the bondholders if there is a default on the bonds.

To continue learning about the role of paying agents, read “Defining the role of a bond trustee or paying agent.“