Issuance of expanded-credit MBS flowed in the first half of the year even as lenders grappled with higher interest rates. Issuance is expected to slow as lenders work to establish a new supply of loans with higher interest rates.
According to Equifax, the 60+ day delinquency rate on subprime auto loans hit a record in March. S&P countered that Equifax is double-counting loans, adding that delinquencies aren’t at record levels in the ABS market.
The Structured Finance Association had asked the Securities and Exchange Commission to hold off on new environmental, social and governance naming and disclosure requirements for asset-backed securities while SFA works on its ESG best practices.
Both delinquencies on securitized student loans and prepayment rates on student loan ABS are up and could increase further due to the Biden administration’s efforts to help distressed borrowers.
Aviation ABS tied to Russia and Ukraine hit with downgrades; Pennsylvania’s private student loans deals from 2020 and 2021 upgraded; KBRA adds Opportunity Zone identifier to commercial MBS tracking; credit card ABS performance expected to decline.
The nonbank revealed it anticipates “roughly break-even net income” for the second quarter, excluding potential mark-to-market gains on its massive MSR holdings...
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