Issuers are having difficulties sourcing assets and are facing widening spreads. Investors are still largely supporting issuance, with many eyeing esoteric assets.
As interest rates increase, the value of outstanding expanded-credit MBS declines. Investors are responding by demanding higher spreads for new issuance, putting pressure on issuers.
Issuance of vehicle ABS saw a healthy 10% increase in the third quarter of 2026, but the business sector recorded a 41% decline as securitization of data centers, fiber-network and aircraft finance faltered. (Includes three data tables.)
The VeriCORE registry will digitize the transfer of consumer loans to reduce data fragmentation across assets and offer enhanced transparency among ABS participants.
SEC guidance exempting certain data center securitizations from risk-retention requirements has prompted concerns from investors regarding the data center market and the possibility that other issuers will seek exemptions from risk-retention requirements.