Securitization

Bonds backed by car loans made by U.S. Auto Sales and American Car Center, two used-car dealers that shut their doors earlier this year, have been veering into distress in recent weeks. Meanwhile, borrowers have been falling behind on payments.

New loan acquisitions fell to their lowest level since 2020, but companies also grew shares of residential securities noticeably over the past three years, S&P Global Market Intelligence said.

The asset manager on Tuesday is set to begin a monthslong process to help the Federal Deposit Insurance Corp. offload $114 billion of assets it picked up from Silicon Valley Bank and Signature Bank. 

Subordinated debt issuances and asset-backed securities have helped institutions of all asset sizes weather recent market uncertainties and fuel campaigns for growth, according to executives and investment experts.

Deal supply remains relatively strong in the sector, but new originations still face a scarcity of new assets to roll into the deals.

The year could be marked by volatility, induced in part by rising interest rates, but prime money market funds could still see a 0.08% rise in assets.

Horizon Technology Finance's Daniel Trolio discusses market strengths, growth challenges, and why Horizon sticks to tried and true capital partners.

The consensus calls for shrinking collateralized loan obligation volume in 2023, but rewards are said to outweigh the risks.

Rule 15c2-11's public disclosure requirements could inhibit Rule 144A issuers unless addressed.

The Fed chair said actively selling securities will become necessary as it looks to reduce its balance sheet, but not anytime soon.

Amid reduced M&A activity, U.S. middle-market borrowers and investors in asset-backed securities are trying to reset and figure out where the right valuations levels are, says Sengal Selassie, CEO of Brightwood Capital Advisors, a lender and issuer of CLOs.

Data as of Mar. 31, 2022. Dollars in thousands.

Questions remain around switching benchmarks that could result in unexpected refinancings

Some of the riskiest loans given to millennials and Gen Z shoppers for clothes and electronics — and neatly repackaged for investors — are dropping in value.

The credit card issuer Synchrony Financial recently used FICO’s top competitor in a $1 billion deal. The choice is significant for VantageScore, but FICO remains the dominant credit score in the securitization market, according to analysts.

On Dec. 31, 2021. Dollars in thousands. (Dec. 31, 2021)

On Sep. 30, 2021. Dollars in thousands.

On Jun. 30, 2021. Dollars in thousands.

Financial institutions will have until early October to weigh in about new risk-based capital requirements for nonbanks.