S&P downgraded its ratings of a whole-business securitization from TGI Fridays, noting that cash flows are plummeting and the deal looks likely to default by early 2025.

The key vehicle ABS sector slowed in the third quarter and business-finance securitization stalled. But issuance in the first nine months of 2024 was up 22.9% from last year. (Includes three data tables.)

The securitization will retire a similar transaction that was issued a year ago. Rating services raised some concerns about changes in streaming and risks from songs generated with AI.

Subprime auto deals that experienced distressed servicing transfers last year saw swings in delinquencies and ultimately took an elevated level of losses, according to Kroll Bond Rating Agency.

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.

Ginnie issuers say cyber reporting standards are too onerous; SEC fines CLO manager; SEC fines rating services for inadequate recordkeeping; T-Mobile ABS sputters; DoubleLine reduces management fee.

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.

Rithm will restate financials going back to 2021; commercial lending executives expect MBS issuance to remain strong; new wildfire risk mitigation recovery bond.