CRT deals involving auto loans typically have a pro rata structure, which can create more risks for investors than the sequential pay structure in ABS transactions. Structures are also evolving, including a deal issued by a nonbank in partnership with a bank.

Investors have shown increasing demand for ABS with home improvement loans and other esoteric assets.

Bank ABS holdings rose unexpectedly in the fourth quarter, but most of the gain came from a portfolio securitization of consumer loans by one institution. (Includes two data tables.)

Attendance at the SFVegas conference this year hit another record. Demand for MBS and ABS is exceptionally strong, with few concerns on the immediate horizon.

Higher vehicle prices and inflation are reducing auto lending to subprime borrowers and lifting the prime sector’s share of ABS issuance.

The National Association of Insurance Commissioners is working to establish a process that would allow the regulator to alter the ratings assigned to certain MBS and ABS held by insurance companies.

FINRA proposed reducing trade reporting requirements to one minute after execution from 15 minutes. Many trades of agency debt securities and TBA MBS already meet the proposed reporting requirements, while ABS reporting lags.

Bank holdings of credit-card ABS were the only sector to show an increase in the third quarter as most top players recorded declines in their portfolios. (Includes two data tables.)

The change in course was fueled by mounting pressure from industry participants and members of Congress, among other stakeholders.

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