Servicers of loans in auto ABS increased their use of loan extensions in March to help borrowers struggling to make payments.

Rating services anticipate the sharp rise in the unemployment rate brought on by the pandemic will damage borrowers’ ability to repay loans.

Auto ABS offerings returning to the market are being met with strong demand from investors, prompting deal sizes to be increased.

The coronavirus-triggered lockdown has prompted rating agencies to increase loss expectations for newly issued auto ABS.

When it comes to pandemic-related bailouts, the Fed is running the table. But the mortgage industry would like to hear something concrete on servicer liquidity.

Securitization of vehicle finance was the strongest component in the ABS market as new issuance rose 40.2% from the fourth quarter. Auto ABS are likely to be among the first to reemerge from the pandemic collapse. (Includes two data charts.)

A $200 million ABS backed by oil and gas assets closed this week while presale reports were published for four auto-backed transactions.

Following pressure from industry participants and lawmakers, the Federal Reserve added legacy commercial MBS and CLOs to the TALF. Industry is hoping that eventually non-QM assets might be covered.

When issuance of non-agency MBS and ABS resumes, issuers will face tougher standards from rating services due to the coronavirus.

Ginnie Mae temporarily waives in-person signatures and takes other precautions in response to the pandemic.