Securitization of vehicle finance was the strongest component in the ABS market as new issuance rose 40.2% from the fourth quarter. Auto ABS are likely to be among the first to reemerge from the pandemic collapse. (Includes two data charts.)

A $200 million ABS backed by oil and gas assets closed this week while presale reports were published for four auto-backed transactions.

Following pressure from industry participants and lawmakers, the Federal Reserve added legacy commercial MBS and CLOs to the TALF. Industry is hoping that eventually non-QM assets might be covered.

When issuance of non-agency MBS and ABS resumes, issuers will face tougher standards from rating services due to the coronavirus.

Ginnie Mae temporarily waives in-person signatures and takes other precautions in response to the pandemic.

During the 2008 financial crisis, investors in non-agency MBS sought repurchases from issuers, citing faulty underwriting and disclosures. A similar surge in putbacks could be on the way for the auto ABS market.

The performance of MBS and ABS looks likely to suffer, with delinquencies projected to increase and rating downgrades a possibility.

DoubleLine is boosting investments in securitized products. The firm recently raised close to $1 billion for a fund aimed at MBS and ABS.

Issuance of non-agency MBS and ABS is still being completed, but at a slower pace. Spreads have widened for new deals along with trading in the secondary market.