Esoteric ABS provide stronger yields than traditional ABS. In exchange, investors face greater liquidity risk and some unknowns on future performance.

The new ABS, comprised of prime auto loans, is a portion of a security Ally privately issued in March. Ratings firms said the deal had a weaker pool composition than previous Ally securitizations.

The Department of Energy is providing a 90% guarantee on loans in an ABS from Sunnova Energy. The loans are part of DOE’s new solar program, Project Hestia.

Loans in a new ABS from Cross River Bank were originated in partnership with Upstart Network. Partnerships with banks provide interest-rate preemption to many nonbank lenders.

DBRS issued a new methodology to assess ABS issuance of loans tied to fine art and collectibles. There’s a growing interest in fine art lending among borrowers, lenders and potentially ABS investors.

The federal government’s new income-driven repayment plan, introduced after the Supreme Court decision, should drive prepayments higher to the benefit of seasoned deals, rating services said.

Reverse mortgage originations are not immune to the impacts of elevated interest rates, a DBRS Morningstar analyst notes.

The first prime auto loan ABS from Volkswagen since late 2021 was upsized this week. And GLS offered its first near-prime auto ABS, expanding on subprime offerings.

Issuance of ABS backed by music royalties will continue to grow, according to KBRA. Also, streaming royalty rates, a large share of music catalog revenues, are expected to increase in coming years.

S&P has assigned AAA ratings to the latest ABS from Octane Lending. The deal is stocked with loans on various powersports vehicles, such as ATVs.