Asset-backed securities issuance set a record in the second quarter as banks and other companies turned away from issuing straight public debt and tapped an alternative fuel for consumer loan growth.

All companies' issuance of asset-backed securities soared to $40.6 billion in the second quarter, reported Thomas Zimmerman head of the asset- backed research division at Prudential Securities. If the trend continues, issuance could reach $150 billion this year, 40% more than in 1995, he added.

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