Some 20 auto ABS have hit the market thus far in January, continuing momentum from a strong 2025. Meanwhile, the outlook for collateral performance is negative, though credit ratings are expected to hold.

Rating services caution that President Trump’s proposed one-year credit card rate cap would negatively impact card issuers and ABS issuance.

Kroll Bond Rating Agency expects new ABS issuance volume to increase by 5% from 2025 to 2026.

Issuers of utility recovery bonds want the SEC to treat the asset as corporate bonds. They raised concerns about a recent flip by the SEC to treat URBs as ABS, though the SEC notes that it has considered some URBs to be ABS for years.

The sentiment among investors at the ABS East conference this week was overwhelmingly positive. Attendance at the event hit a record, and investor demand for MBS and ABS is expected to remain strong into 2026, buoyed by anticipated interest rate cuts by the Fed.

Upgrade is getting into auto loan ABS issuance and Imprint Payments is set to issue its first credit card ABS.

California and Massachusetts are the latest states to consider securitization as a way to reduce consumer energy bills.

The Securities and Exchange Commission will be seeking feedback next month on ways to boost issuance of publicly-registered MBS and ABS.

Both lenders’ inaugural deals were oversubscribed, helping to diversify the companies’ capital sources.

The securitizations will pay off older ABS from the issuers. Rating services had largely positive things to say about the deals.