ABS backed by home equity investments are offering unlevered returns in the low double digits. The first rated HEI ABS was issued in October and industry players are anticipating exponential growth.
Used equipment inventories are on the rise, adding to other agriculture equipment ABS risks posed by high interest rates and lower equipment demand, according to Moody’s Investors Service.
A bank sought approval from the OCC to have a special purpose vehicle treated as a securitization for capital requirement purposes. The OCC demurred, noting that just because the transaction was an SPV didn’t make it an ABS.
Ascent Funding has an offering backed by loans tied to coding classes. Morningstar has warned that ABS investors aren’t protected in the event of a bankruptcy by the borrower.
NewtekOne is boosting originations of small business loans outside of the SBA 7(a) program. The firm recently issued its second ABS of the loans, offering strong yields for issuers and investors.
Vehicle-financing securitizations continued to dominate ABS issuance in the second quarter, although volume fell 9% from the first three months of the year. Business ABS issuance almost made up the difference. (Includes three data tables.)
Christopher Stanley, a security engineer at SpaceX, is the first member of Elon Musk’s Department of Government Efficiency to join a GSE board.
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