Consumer Finance ABS Issuers Seen as Feeding Investor Demand Without Tilting Too Much Toward Securitization
August 18, 2017
In the first half of 2017, the dollar volume of credit card ABS issued was nearly three times the issuance seen in the first half of last year. However, analysts at Fitch Ratings suggest that issuers of consumer finance ABS aren’t relying too heavily on the structured finance market for their funding. The rating service said increased issuance of ABS could affect some issuers’ credit profiles if it leads to a sustained increase in secured wholesale funding sources. “However, we believe that this trend does not yet represent a structural shift, with many consumer finance-oriented financial institutions raising consumer ABS issuance opportunistically to take advantage of attractive pricing and to enhance the liquidity of their ABS programs,” the rating service said. Some $24.38 billion of credit card ABS were issued...