Nearly $3 billion worth of new bonds backed by consumer loans have emerged in the last full week before the Thanksgiving holiday, which marks the traditional end of the issuance calendar.
Issuers from Harley-Davidson Inc. to Banco Santander tapped the market on Monday. The collateral backing of the new bonds ranged from car and motorcycle loans to student loans and credit card debt.
Nonetheless, the bulk of asset-backed securities' issuance centers on the auto sector this year, at more than 60%, as demand for cars as well as auto ABS remains strong.
By contrast, deals backed by credit card debt are less than 7% of the total, largely because consumers have shied away from racking up debt amid an anemic economy and stubbornly high unemployment rate.
Harley-Davidson has tapped the market with a $600 million security backed by loans on motorcycles, its first bond this year.
Santander Consumer USA, the consumer finance entity of Spain's Banco Santander, has a $675 million subprime auto loan-backed bond.
Gracechurch Card Funding, through which Barclays Capital securitizes UK Barclaycard receivables, has a $500 million bond, according to a person familiar with the matter.
Also Monday, South Carolina Student Loan Corp. was in the market with a $500 million student-loan-backed bond, according to a person familiar with the matter.