Rocket is set to issue its second consumer loan ABS; Golub Capital issues rare long-duration CLO; large jumbo MBS from Chase; ratings performing as expected.

Both lenders’ inaugural deals were oversubscribed, helping to diversify the companies’ capital sources.

The rule, implemented in June, aims to prevent conflicts of interest in the ABS market. The SEC provided no-action relief in May, helping ease compliance with the rule.

The securitizations will pay off older ABS from the issuers. Rating services had largely positive things to say about the deals.

While primarily known for mortgages, Rocket has been originating consumer loans since 2016. The loans are originated in partnership with Cross River Bank, providing federal preemption of state laws.

Economists find that the ability of fintechs to incorporate alternative data into their underwriting allows them to expand their borrower base while at the same time reducing defaults and delinquencies.

JPMorgan Chase Bank issued a new credit-risk transfer deal and FinBe brought a subprime auto ABS. The last time either issuer offered a similar transaction was in 2021.

It’s the first auto loan ABS with loans aggregated from multiple credit unions. Alloya is a corporate credit union that provides services to more than 1,300 credit unions and other entities.

The auto loan ABS comes even as U.S. Bank scales back its auto lending and servicing.

Investors are showing a greater interest in ABS this month, following a rocky April. The recent softer tone taken by President Trump on tariffs seems like the reason.