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 expiration of payment relief will result in a modest increase in delinquencies but resumed payments will support cash flows for the ABS deals, according to industry analysts.

Less than $1 billion of credit card ABS were issued in the first nine months of 2020 even though outstanding deals are performing well. Delinquencies are expected to increase.

Strong performance of outstanding marketplace consumer loan ABS is bringing issuers and investors back to the market. But default risks will likely increase through the remainder of the year, according to analysts.

The vendor uses machine learning and artificial intelligence technology to select and purchase consumer loans from originators.

Production levels surged for agency 1-4-family MBS, non-mortgage ABS and commercial MBS from the second to the third quarter. Nonbanks continued to dominate the agency market. Includes three data charts.)

ABS tied to Bojangles, powersports equipment and airline mileage programs recently hit the market. Meanwhile, a whole-business ABS from Planet Fitness was downgraded.

Issuance of ABS tied to marine container leases set sail in August, with the sector producing more volume in recent weeks than all of 2018 and 2019 combined.

The bull market in debt offerings by mortgage-related vendors continues. The latest participant: ICE, which is buying Ellie Mae for a stunning $11 billion.

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