Higher vehicle prices and inflation are reducing auto lending to subprime borrowers and lifting the prime sector’s share of ABS issuance.

Issuance of home-improvement securitizations came in at $3.5 billion in 2023, according to Kroll Bond Rating Agency. Some of that volume was in privately-rated deals that haven’t been disclosed to this point.

S&P Global Ratings projects prime auto loan ABS ratings to remain stable to positive in 2024, but subprime auto ABS ratings could drop.

The potential merger of the two credit card companies will result in significant consolidation in bank credit card portfolios and a new market leader.

The AAA-rated credit card ABS was issued by WF Card Issuance Trust, a de-linked credit card receivables-backed trust sponsored by Wells Fargo.

The consumer loans originated through this partnership will be acquired by Pagaya for securitization purposes.

Huntington National Bank is in the market with its first auto ABS since 2016. The bank completed a credit-risk transfer transaction in late December involving a $3.0 billion pool of auto loans.

Purchasing Power partners with employers to offer employees funds for purchases of appliances, electronics and furniture. The firm doesn’t charge interest on the loans. Instead, prices on the items are marked up.

The National Association of Insurance Commissioners is working to establish a process that would allow the regulator to alter the ratings assigned to certain MBS and ABS held by insurance companies.

Lendbuzz, which focuses on an artificial intelligence-powered platform to underwrite auto loans, closed a AAA-rated $218.7 million ABS.