Banks reported substantial gains in their holdings of consumer ABS and deals backed by vehicle loans, along with steep drops in credit card and commercial securitizations. (Includes two data charts.)
CLO issuance surged in the fourth quarter, fed by growth in restructured deals and the BSL market. Palmer Square ranked as the top manager of new issuance. (Includes data chart.)
The property assessed clean energy ABS issued by Renovate America are “largely insulated” from the company’s financial troubles given its limited involvement in the deals post-issuance, according to KBRA.
Fitch has downgraded 37% of the airline ABS it rates. Kroll and S&P also recently conducted sweeping downgrades. The rating services said air travel isn’t expected to recover until 2023 at the earliest.
Issuance in the MBS and ABS markets seems to be humming along with tighter spreads. But industry participants warn investors should beware of over-optimism.
Issuance of ABS tied to marine container leases set sail in August, with the sector producing more volume in recent weeks than all of 2018 and 2019 combined.
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