The market for securities backed by consumer loans showed signs of strain Friday as risk premiums on top-rated bonds widened on concerns about fallout from Europe's turmoil.

Navistar Financial Owner Trust, for example, launched a $919 million, auto-loan-backed bond with most parts at wider risk premiums than in the initial pricing guidance. Navistar even "retained" the lowest-rated portion, meaning it will not even try to sell it.

"The consumer asset-backed securities market is beginning to wobble," said Dan Nigro, the chief executive of Warfield Consultants in Montclair, N.J. "It is not unexpected given the global markets," he said. "It is foolishly xenophobic to assume that our markets will remain untouched."

Yield spreads on AAA-rated credit card bonds widened by 10 to 15 basis points last week, said a trader at a primary dealer in a note to clients. "The market has finally started to give, caving in to pressure from the surrounding markets."

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