Less than $1 billion of credit card ABS were issued in the first nine months of 2020 even though outstanding deals are performing well. Delinquencies are expected to increase.

Strong performance of outstanding marketplace consumer loan ABS is bringing issuers and investors back to the market. But default risks will likely increase through the remainder of the year, according to analysts.

As mortgage debt deals proliferate, so too are rating agency reports on the issuers. Among the latest: UWM, FoA and loanDepot.

The vendor uses machine learning and artificial intelligence technology to select and purchase consumer loans from originators.

While mortgage IPOs are starting to look dicey, the debt market continues to be receptive. The latest issuer: wholesale giant UWM.

Auto-loan securitization remained the biggest ABS sector, but business-finance deals recorded the biggest third-quarter increase. Delta’s air-mile deal set the pace. (Includes two data charts.)

Delinquencies in auto securitizations increased in August, the first uptick in five months. But losses were at record low levels during the month.

Mortgage firms continue to court the debt market with note offerings. The latest deals come from loanDepot, Starwood and PennyMac Financial.

Growing student debt has exposed ABS backed by such loans to elevated risks, increasing the possibility the notes will not pay off by their final maturities.

Fitch has downgraded 37% of the airline ABS it rates. Kroll and S&P also recently conducted sweeping downgrades. The rating services said air travel isn’t expected to recover until 2023 at the earliest.