Morningstar DBRS and Moody’s gained share in non-agency MBS ratings in the second quarter, while S&P made up ground in the ABS market. Fitch, however, remained the top rating service in both sectors. (Includes two data charts.)

Preferred equity and residual-interest debt financing are increasingly being used in ABS and CLO transactions.

The guidance clarifies that data center securitizations aren’t considered ABS as defined in the Securities Exchange Act.

If approved, Zaria National Trust Bank would offer trustee services for ABS, servicing, collateral management and more.

Banks are expected to increase their use of synthetic-risk transfers following greater clarity on the products from regulators.

The firm issued $3.7 billion of ABS during the second quarter, a 76.2% sequential jump. Pagaya aggregates auto loans, unsecured consumer loans and point-of-sale financing products.

Fitch ratings found that early-stage delinquencies and cumulative default rates for consumer ABS deals are higher following a servicer bankruptcy or originator wind-down.

Securitization of consumer loans and credit cards saw huge gains from the first to the second quarter, helping ABS issuance set a new record. Stellantis was the top ABS issuer in the second quarter, while Bank of America ranked as the top underwriter. (Includes three data tables.)

ABS investors are advised to look closely at deals and focus on senior tranches that offer protection from lower-income borrowers.

The firm started offering credit cards in 2024 and is poised to top more than one million cardholders this year. The monthly payment rate on Robinhood’s gold card is well above MPRs for cards from many other firms, thanks to the 3% cash back offered on all transactions.