Production of new non-mortgage ABS soared in the first three months of 2018, pushing the market to its strongest quarter since the April-June cycle back in 2008. [Includes two charts.]

The securitization of film rights is a growing market, a wide-open frontier that could be the proverbial mother lode for daring investors or a financial graveyard for the ill-informed.

Losses on subprime auto ABS spiked in 2016, prompting warnings from industry analysts about lenders loosening underwriting standards in an effort to gain market share. Subprime auto lenders and ABS issuers appear to have made some adjustments as losses stabilized last year, though some concerns about performance linger.

Certain types of MBS and ABS appear to have some wiggle room regarding risk-retention requirements. According to industry lawyers, many single-asset/single-borrower (SASB) commercial MBS can be structured to avoid risk retention and the rules might not apply to certain esoteric ABS.

The regulatory relief bill recently passed by the Senate would reduce uncertainty for future ABS tied to Property Assessed Clean Energy financing programs, rating services said.

Marketplace lenders participating in the ABS sector predict that issuance will increase this year due to strong demand from investors and an ample supply of new originations.

The Internal Revenue Service said that interest payments on home-equity loans can still be deductible under the Tax Cuts and Jobs Act that went into effect at the end of 2017 if it’s used for home improvements.

The banking industry continued to show tepid interest in the non-mortgage ABS market as 2017 came to a close, according to a new Inside MBS & ABS ranking and analysis.

The consumer credit cycle seems to be weakening, given current credit trends in consumer ABS, analysts at Wells Fargo Securities said in a new report. They see the solution as being broad economic growth.

A subsidiary of Tesla issued its first ABS backed by auto leases this week and the electric car manufacturer plans to issue more deals going forward. The $608.1 million deal received AAA ratings from Moody’s Investors Service even though concerns were raised about various issues involving the transaction.