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.
Portfolio holdings of agency MBS fell mostly due to lower market value for the assets. REITs also recorded a significant drop in TBA investments as agency MBS issuance declined. (Includes data chart.)
After a two-week lull in issuance of jumbo MBS, a handful of deals hit the market. MBS issuers are facing weak demand from investors, with whole-loan outlets often offering better pricing.
The first Black woman to serve as head of the Federal Housing Finance Agency squeaked through the confirmation with just one Republican vote, Sen. Mike Rounds of South Dakota.
Investors are showing little demand for new issuance of CLOs and trading in the secondary market. CLOs are being sold off and are meeting with few potential buyer options.
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