When Congress passed the Dodd-Frank Act in 2010, the SEC had nine months to issue a rule on conflicts of interest in the securitization market. The proposed rule on the issue has been pending since 2011.
Aircraft market values have not recovered post-pandemic, according to Fitch Ratings. Also, improvements will drag on due to supply and demand imbalances. The wild card? Next generation replacement technology, which relegates older airline models to the hangar.
Data center securitizations issued in recent years carry elevated leverage that is inconsistent with the A rating they received from rating services other than Fitch.
As rates stay low, the corporate debt issuance boom continues but recent deals may be among the last for a while until real estate market values become clearer.
Commercial banks boosted their ABS holdings during the first quarter, with much of the gain coming in paper backed by auto loans. TD Bank added $2.2 billion of auto deals to remain the top bank ABS investor. (Includes two data charts.)
Mortgage banking firms have been emulating some of their customers by taking advantage of rock-bottom rates to borrow as much as they can. Should anyone be worried?
The extension rate on loans in auto ABS declined again in February. Still, extensions are elevated compared with a year ago, just before the pandemic hit the economy.
Production of vehicle-finance and business ABS was up sharply in the first quarter. A transaction backed by future cash flows from an airline rewards program played a big part, while student loan and consumer ABS markets also posted big gains. (Includes two data charts.)
“Issue debt while you can.” That seems to be the mantra of nonbank mortgage lenders and even real estate mortgage investment trusts. The latest sellers: UWM and PennyMac.
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