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.

The SEC’s Investor Advisory Committee wants increased regulatory disclosures in the sector. However, an SEC commissioner questioned the utility of the proposal.

Banks reported substantial gains in their holdings of consumer ABS and deals backed by vehicle loans, along with steep drops in credit card and commercial securitizations. (Includes two data charts.)

CLO issuance surged in the fourth quarter, fed by growth in restructured deals and the BSL market. Palmer Square ranked as the top manager of new issuance. (Includes data chart.)

The property assessed clean energy ABS issued by Renovate America are “largely insulated” from the company’s financial troubles given its limited involvement in the deals post-issuance, according to KBRA.

Speakers at this year’s ABS East conference — held online — focused on how the coronavirus impacted assets and the outlook for 2021.

Delinquencies in auto securitizations increased in August, the first uptick in five months. But losses were at record low levels during the month.