Delinquencies and losses on subprime auto ABS have been rising. Improved underwriting and inflation leveling out could help improve performance, according to industry analysts.

Cogent Communications is using 13 million IP addresses as collateral for a novel securitization.

Issuance of home-improvement securitizations came in at $3.5 billion in 2023, according to Kroll Bond Rating Agency. Some of that volume was in privately-rated deals that haven’t been disclosed to this point.

Moody’s Investors Service said performance for student loan ABS is seeing issues as a result of public policy moves around student loan debt and a resumption of payments after a several-year pause.

Equipment ABS and other types of corporate securitizations should hold up well, even in the face of an economic slowdown, according to projections by Moody’s Investors Service.

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

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.

Issuance of student loan ABS has been constrained by rising interest rates and uncertainty on federal forbearance policies, among other issues. With payment requirements on federally backed loans set to resume, delinquencies could increase.

Higher interest rates are contributing to elevated delinquencies in auto ABS; Kroll places ratings on 11 commercial MBS on watch for downgrade; DBRS adds asset types to rep and warrant analysis; DBRS proposes updating its ESG analysis.

Former Federal Reserve official joins SFA; delinquencies rising on credit card and student loan ABS; KBRA creates new business development role for structured finance.