can anybody explain what it consists of?
I assume that you mean GIC-backed notes? For these, an insurance company sells GICs to a SPV set up by the same insurance company. The SPV then issues bonds and lists the GICs as collateral. GIC claims are considered pari-pasu with policyholders, while direct-debt is subordinate to policyholders. Thus, structure (though never tested in court) may allow insurance companies to issue debt more cheaply on the basis of it’s more senior status. Or do you mean a separate account GIC?
and what type of collateral does the GIC have? are they ABS?
The good word of the issuing institution