Four whole-business securitizations totaling $3.58 billion are in the works, according to presale reports, including a $900.0 million deal from Coinstar. The securitization from Coinstar received a preliminary BBB rating from Kroll Bond Rating Agency. The company owns nearly 20,000 kiosks that count change located in grocery stores and other retail venues, mostly in the U.S. The company generates...

Recent remarks by Craig Phillips, counselor to the secretary of the Treasury Department, suggest that the Trump administration supports proposals to reduce regulatory burdens in the MBS and ABS markets. The agency is in the process of finding regulations that can be “clarified, modified or tailored” to help boost the housing market. “We believe it’s time to assess whether regulatory requirements have unnecessarily tightened the credit box for new originations,” Phillips said at a credit-risk transfer symposium in New York City. “Regulatory requirements have also contributed to increased cost in servicing. Capital and liquidity standards have put private-label securitization at a disadvantage.” The Structured Finance Industry Group noted...

President Trump’s tax plan would raise the federal debt, but could benefit residential MBS, consumer ABS and asset-backed commercial paper, depending mostly on the effect on the underlying obligors’ after-tax income, according to a recent research report from Moody’s Investors Service. “The administration’s blueprint proposes a reduction in the corporate tax rate to 15 percent from 35 percent, which would also apply to partnerships and other ‘pass-through’ businesses that are currently taxed through their principals’ individual returns,” analysts explained. The White House plan also features...

Issuance of ABS backed by nonprime personal installment loans is expected to increase, according to S&P Global Ratings. The rating service hasn’t assigned AAA ratings to such ABS, though S&P said it will approach each deal on a case-by-case basis. Between 2013 and 2016, $10.50 billion of ABS backed by branch-based unsecured personal installment loans was issued, according to S&P. The rating service highlighted the sector recently, noting that personal installment loans don’t receive as much attention as marketplace lending, which had $15.10 billion in MBS and ABS issuance between 2013 and 2016. “Branch-based fixed-rate, fixed-term unsecured personal installment loans may not be...

Risk-retention requirements for MBS and ABS have been in effect for over a year, but industry participants are still grappling with how to comply with the standards, according to industry attorneys. Angela Ulum, a partner at the law firm of Mayer Brown, said industry practices and interpretations of the risk-retention requirements are starting to differ among different asset classes. During a webinar hosted by Mayer Brown last week, Ulum noted...

A lot of ABS issuers that sat out the final three months of 2016 came back to the market early this year, according to a new Inside MBS & ABS analysis and ranking. Some $53.38 billion of non-mortgage ABS were issued during the first quarter, a huge 55.9 percent jump from the previous three-month period. The market didn’t quite match the high point of last year, but issuance in the first three months of 2017 was up 23.1 percent from the same period in 2016. First-time issuers and those that didn’t issue in the fourth quarter accounted...[Includes two data tables]

Secondary market participants would see a host of changes across the regulatory landscape under a detailed discussion draft of an overhaul to the Dodd-Frank Act that began circulating late last week from the office of House Financial Services Committee Chairman Jeb Hensarling, R-TX. The Financial CHOICE Act, resurrected from the 114th Congress and revised in a number of key areas, would eliminate the Dodd-Frank risk-retention requirements for ABS other than residential mortgages. Elsewhere, wording in the bill has been included...

As Congress considers changes to the Dodd-Frank Act and other regulatory reforms, the Structured Finance Industry Group weighed in with a white paper detailing various regulatory reforms sought by participants in the MBS and ABS markets. One of the top priorities for the trade group is the so-called Regulation AB2, which sets loan-level disclosure requirements for securities. The Securities and Exchange Commission set...

Seven marketplace lending securitizations with a total issuance of $3.0 billion came to market during the first quarter of 2017 – a quarterly record, according to a new report by PeerIQ, a New York-based data provider and risk-analysis firm for the peer-to-peer lending industry. Total securitization issuance to date now stands at $18.0 billion, with 80 deals issued so far (48 consumer, 22 student, one mortgage and nine small and medium-sized enterprises) since September 2013, the PeerIQ analysts said. Also, the trend towards rated deals and larger transactions continued...

State attorneys general from Delaware and Massachusetts announced a $25.9 million settlement last week with Santander Consumer USA Holdings involving subprime auto ABS. The settlement relates to post-crisis activity and the AGs said it was the first settlement with state AGs relating to subprime auto loan funding. The office for Massachusetts Attorney General Maura Healey said the settlement is part of the AG’s ongoing review of securitization practices in the subprime auto market. “We found...