The market leaders in rating non-agency MBS and non-mortgage ABS retained their top rankings in 2018. S&P Global was the top rating service in the ABS market, according to a new Inside MBS & ABS market analysis, after rating $142.24 billion of new issuance, an 11.6% percent increase from 2017. [Includes two data charts.]
LendingClub, which operates an online marketplace, recently issued its first consumer loan-backed ABS of the year. The loans were originated under a model that has been successfully challenged in certain courts, raising concerns from rating agencies.
In a first, Connecticut Green Bank will issue an ABS backed by solar renewable energy credits. The $38.6 million deal from the nation’s first green bank could provide proof of concept for future issuance.
Commercial banks and savings institutions increased their investment in non-mortgage ABS during the fourth quarter of 2018, though the industry’s appetite for the product remained tepid. [Includes two data charts.]
GM Financial’s new auto lease securitization deal is weighted toward shorter-term maturities, likely to combat volatility in the auto market, such as falling prices of used cars.
Securitizations backed by oil and gas royalties likely will be issued this year, according to Fitch Ratings. The agency updated its future flow securitization rating criteria last week in anticipation of such ABS issuance.
SoFi’s first consumer loan securitization deal this year will include a higher portion of loans from the company’s lowest credit tier, but rating agencies said the credit quality of the transaction is stronger than its previous consumer loan ABS deals.
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