Issuance of auto ABS in the third quarter of 2023 has topped issuance from the second quarter. Issuers are seeing strong demand from investors despite rising defaults. An auto worker strike is also introducing some uncertainty.
Bank holdings of auto ABS were up in the second quarter due to a big gain at U.S. Bank, while Ameriprise reported a sharp drop in its portfolio of commercial/industrial ABS. (Includes two data charts.)
Larger banks say federal regulators’ proposal to increase capital requirements is more stringent than international standards and came with insufficient explanations.
The final rule for private fund advisers addressed many concerns of CLO market watchers around compliance burdens. Separately, a federal appeals court held that syndicated term loans aren’t securities.