Performance of ABS backed by credit-card receivables remained strong in the third quarter of 2018 despite rising consumer-debt levels, according to an update from Moody’s Investors Service.

Green securitizations have sprouted across the structured-finance industry, sometimes impacting a transaction’s credit quality, Moody’s Investors Service said in a recent report.

The Structured Finance Industry Group has welcomed a recent court ruling that allows ABS investors to intervene in a case brought by the Consumer Financial Protection Bureau that aimed to hold securitization trusts liable for violations committed by servicers.

A federal court recently allowed asset-backed securities investors to intervene in a case brought by the CFPB against securitization trusts. Industry participants said it is an important and favorable decision for the securitization industry. Back in September 2017, the CFPB brought an enforcement action against National Collegiate Student Loan Trusts regarding certain student loan debt-collection practices. While the CFPB acknowledged that subservicers – not the trusts themselves ...

Issuance of new non-mortgage ABS dropped significantly from the second to the third quarter of 2018, although a few sectors saw increased volume, according to a new Inside MBS & ABS analysis and ranking of the market. [Includes two data charts.]

ABS issued as private placements tend to draw less demand from investors than deals registered with the Securities and Exchange Commission, but issuers have a number of incentives to bring deals as private placements, according to industry participants.

Despite the slowdown in the securitization of residential property assessed clean energy assessments, the market is in good condition because of its low credit risk and growing consumer protection, according to Morningstar Credit Ratings.

DBRS was the most active rating service in the non-agency MBS market during the first six months of 2018, according to a new Inside MBS & ABS analysis. DBRS rated 26 non-agency MBS totaling $14.08 billion during the first half of the year, which represented 43.5 percent of total issuance. Its market share was up 4.0 percentage points from 2017. Fitch Ratings grew its market share in rating non-agency MBS, which rose from 31.0 percent last year to ... [Includes two data charts]

Changes made by the Dodd-Frank reform bill, along with other legislative proposals and government actions, would have mixed credit impact on ABS backed by student loans, said Moody’s Investors Service.

Commercial banks and savings institutions added to their holdings of non-mortgage ABS during the second quarter but still play a relatively minor role in the market. [Includes two charts.]