A subsidiary of Singapore-based Temasek Holdings is set to issue an ABS backed by cash flows from private-equity funds. The deal, which will include tranches in Singapore dollars and U.S. dollars, received preliminary A- ratings.

Commercial banks and savings institutions held $113.75 billion of non-mortgage ABS in portfolio at the end of March, a scant 0.1 percent increase from the previous quarter, according to a new ranking and analysis by Inside MBS & ABS. [Includes two data charts.]

A proposed merger between telecommunication giants T-Mobile US and Sprint Corp. would provide a credit boost for Sprint’s spectrum ABS but not for the wireless tower ABS sector, according to a report from Moody’s Investors service.

S&P Global Ratings has rated its first Property Assessed Clean Energy (PACE) securitization deal, which could help perk investor interest in the fledgling asset class.

Production of new non-mortgage ABS soared in the first three months of 2018, pushing the market to its strongest quarter since the April-June cycle back in 2008. [Includes two charts.]

The securitization of film rights is a growing market, a wide-open frontier that could be the proverbial mother lode for daring investors or a financial graveyard for the ill-informed.

Losses on subprime auto ABS spiked in 2016, prompting warnings from industry analysts about lenders loosening underwriting standards in an effort to gain market share. Subprime auto lenders and ABS issuers appear to have made some adjustments as losses stabilized last year, though some concerns about performance linger.

Certain types of MBS and ABS appear to have some wiggle room regarding risk-retention requirements. According to industry lawyers, many single-asset/single-borrower (SASB) commercial MBS can be structured to avoid risk retention and the rules might not apply to certain esoteric ABS.

The regulatory relief bill recently passed by the Senate would reduce uncertainty for future ABS tied to Property Assessed Clean Energy financing programs, rating services said.

Marketplace lenders participating in the ABS sector predict that issuance will increase this year due to strong demand from investors and an ample supply of new originations.