FHFA plans to issue a proposed rule regarding credit-risk retention and the SEC is working toward a proposal to encourage issuance of publicly registered MBS and ABS.

SFA and other trade groups are seeking major changes to the re-proposed bank capital requirements. MBA raised concerns that non-agency MBS would receive more favorable capital treatment than GSE MBS.

A number of nonbanks involved in the ABS market have opted for bank charters in recent years. The capital requirements and oversight that come with that status will benefit nonbank ABS, Moody’s said.

The downgrade watch was attributed to deterioration in performance, underperformance and liquidity challenges.

Trade groups expressed concern that proposed changes to Rule 15c2-11 of the Securities Exchange Act could accidentally ensnare ABS.

Byzfunder issued its first ABS last week, a transaction that was three times oversubscribed by investors. Repeat issuers are also ramping up originations and issuance volume.

Sylvain Raynes, the new lead of the structured finance practice at Egan-Jones Ratings Company, warned that MBS and ABS investors are losing money if they’re relying on fairly static ratings from other firms.

A superior court decision centered on a bank-fintech partnership rejected the state’s argument regarding the “true lender,” providing protection for secondary market participants.

Kroll Bond Rating Agency said the One Big Beautiful Bill Act’s changes to federal student loans for graduate students will likely create a structural funding gap and shift loan demand toward private lenders, with production flowing into ABS.

The auto and unsecured loan sectors are facing headwinds, while the credit card sector has a more stable outlook.