Jun 2016: Tax Ease has issued its first ABS secured on tax liens (charges).
In this type of transaction, the buyer of the tax charge (Tax Ease) pays the council that is owed tax, a lump sum (funded by the ABS issue by Tax Ease). Tax Ease hopes to collect the tax owed either over time from the homeowner who has failed to pay property tax either by instalments, or perhaps by remortgaging the property or selling it in a repossession. See here for further background on tax lien certificates
Since the homeowner is probably in a financially distressed situation, the ABS has a very low LTV. This ABS also includes a prefunded amount. Details here
Tax Ease explains its business here
Some legal risks of this type of investment are set out here
Moody's has referred to its rating methodology here
First National Assets issued a similar ABS in Dec 2015, Details here