The transactions offer diversification for ABS investors, though rising interest rates could make it difficult for issuers to refinance ahead of anticipated repayment dates.
Issuers are having difficulties sourcing assets and are facing widening spreads. Investors are still largely supporting issuance, with many eyeing esoteric assets.
SEC guidance exempting certain data center securitizations from risk-retention requirements has prompted concerns from investors regarding the data center market and the possibility that other issuers will seek exemptions from risk-retention requirements.
The proposal would set higher capital requirements for multi-collateral structured credit investments by insurance companies. The Structured Finance Association is calling for additional disclosure instead.
A working group at the National Association of Insurance Commissioners proposed harsh treatment of multi-collateral structured credit investments at insurance companies.
The firm issued $3.7 billion of ABS during the second quarter, a 76.2% sequential jump. Pagaya aggregates auto loans, unsecured consumer loans and point-of-sale financing products.
SFA and other trade groups are seeking major changes to the re-proposed bank capital requirements. MBA raised concerns that non-agency MBS would receive more favorable capital treatment than GSE MBS.
Sylvain Raynes, the new lead of the structured finance practice at Egan-Jones Ratings Company, warned that MBS and ABS investors are losing money if they’re relying on fairly static ratings from other firms.
Bank ABS holdings rose in the first quarter thanks to sizable gains in securities backed by consumer and auto loans. TD Bank accounted for much of the increase. (Includes two data tables.)
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