All of the participants in the Fed’s TALF program set up in the early days of the pandemic were so-called opportunistic investors that hadn’t previously been buying AAA-rated deals.

ABS issuers and investors are considering whether to use SOFR or Treasury rates as a pricing benchmark following the end of LIBOR reporting.

Some investors in MBS and ABS are ready to discard data collected in the past two years due to distortions from actions by the federal government. One problem: projecting asset performance moving forward.

Issuance of CLOs is surging as investors gain confidence in the asset class. Refinances of deals issued two years ago are also helping.

Although only $4.5 billion of TALF funding was requested during the facility’s pandemic-related course, the Federal Reserve program is credited with stabilizing the ABS market.

Most of the modest gain in bank ABS investment came from a handful of large banks buying deals backed by unsecured consumer loans, a fast-growing market. (Includes two data charts.)

One of the five draft bills proposed by the House Democrats this week seeks to establish a board that would be responsible for assigning rating services to provide grades on MBS and ABS.

Many auto ABS market participants believe subprime lenders will be subject to new laws requiring them to ensure borrowers have the ability to pay.

CLO issuance has gained speed with the macro environment looking good and interest rates rising. Note: While S&P was quick to downgrade deals during the pandemic, upgrades have been slower.

Although rates have been rising, nonbank MBS issuer loanDepot this week took a trip to the corporate debt well, offering seven-year paper.