Former Federal Reserve official joins SFA; delinquencies rising on credit card and student loan ABS; KBRA creates new business development role for structured finance.

Another subprime auto ABS issuer closed its dealerships last week. Back-up servicers can help to protect investors from failing issuers, though there were some complications with a recent servicing transfer.

Industry stakeholders believe Farmer Mac could face risks arising from climate change. However, the government-chartered company took issue with a proposal to amend and strengthen its capital framework.

The two biggest components in the ABS market — vehicle and business finance securitization — recorded significant gains from the fourth quarter. Overall issuance was boosted by utilities deals. (Includes two data charts.)

Private student loan refis and ABS issuance linked to the loans look poised to increase after plummeting in 2022.

Issuance of ABS backed by music royalties will continue to grow, according to KBRA. Also, streaming royalty rates, a large share of music catalog revenues, are expected to increase in coming years.

The SEC’s proposed rule on conflicts of interest in the securitization market is unworkable and unnecessarily broad, according to industry stakeholders.

Speakers on a recent dv01 panel said unemployment would be a key factor in performance moving forward. Unsecured consumer loans are demonstrating some weakness, while auto performance is normalizing.

In the wake of the recent bank failures, bank regulators could likely adjust standards regarding securities held by banks.

The failures of various banks shouldn’t have a significant impact on investors of MBS and ABS, according to rating services.