Issuance of container ABS surged in the third quarter of 2020 only to deflate in the fourth quarter. KBRA has a positive outlook for the sector despite the ongoing coronavirus.

For years, industry analysts raised concerns about the quality of CLOs, warning of poor performance. While issues from the coronavirus prompted some problems, AAA-rated tranches of CLOs have held strong.

The property assessed clean energy ABS issued by Renovate America are “largely insulated” from the company’s financial troubles given its limited involvement in the deals post-issuance, according to KBRA.

In December, the capital markets remained receptive to all that nonbanks and REITs had to offer. But will it continue?

The MBS market can expect a push from increased availability of mortgages and improvements to ABS performance.

Issuance of rated non-agency MBS and ABS rose significantly during the third quarter, although both markets continued to lag behind 2019 on year-to-date volume. (Includes two data charts.)

Speakers at this year’s ABS East conference — held online — focused on how the coronavirus impacted assets and the outlook for 2021.

The use of LIBOR as an index is slated to end in just under 13 months but the benchmark administrator has other ideas. One issue: legacy contracts.

Democrats said the Treasury’s decision to end the TALF facility at the end of the year was a political move to prevent the incoming Biden administration from stabilizing the economy.

The top five bank investors in the ABS market all reported substantial declines in their holdings during the third quarter. One bright spot was investment in the surging consumer ABS market. (Includes two data charts.)