The Federal Reserve’s lending program is credited with helping the MBS and ABS sector even though investor demand is falling short of expectations.

The underlying pool includes prime unsecured consumer loans from Lend-ingClub that were selected using machine learning.

New CLO issuance fell sharply from the first quarter of 2020 to the second. Upheaval caused by COVID-19 led to widespread downgrades of borrowers backing CLO deals, though most senior bonds still have a favorable outlook. (Includes data chart.)

The debt market has been a welcoming place for all sorts of issuers of late. The latest participant: MGIC Investment Corp.

Investors continue their attraction to mortgage-related offerings, debt or otherwise. The latest firm to saddle up to the capital markets bar: Mr. Cooper.

Loans backing securitized products are holding up fairly well even though the use of forbearance has increased. A combination of investor protections and changes in underwriting practices is helping.

Although ABS issuance backed by auto finance fell 26% from the first to the second quarter, the sector still accounted for nearly 57% of non-mortgage securitization in the first half of 2020. (Includes two data charts.)

Extensions on loans in auto securitization deals declined in May after peaking in April. The outlook on loan performance is uncertain.

With rates at rock bottom, LendingTree is selling $500 million worth of short-term corporate paper. Not bad for a loan broker.

Rating services are requiring higher credit enhancement levels and taking negative actions on outstanding deals due to problems stemming from the coronavirus. Fitch finalized new criteria for residential MBS late last week.