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.