Consumer ABS

Strong investor demand for two recent securitizations by Navient, the largest servicer of federally guaranteed student loans, suggests that banks may soon have an opportunity to resume unloading such assets.

NextGear Floorplan Master Owner Trust 2016-1 is an ABS of two pools of auto and specialty vehicle loan receivables from dealers using the funds to purchase used cars and trucks from auto auctions that include inventory from other dealers as well as salvage-title cars.

The Consumer Financial Protection Bureau's agenda is so packed it's no wonder that when Director Richard Cordray testifies on Capitol Hill, he has to tackle a huge array of subjects. Following are areas where the agency has proposals or final rules outstanding:

BMW AG is securitizing its fourth pool of auto loans to German consumers and business customers in a €800 million transaction through its Bavarian Sky S.A. platform.

As financial regulators consider how to fit the burgeoning marketplace lending industry into the existing regulatory structure, banks and consumer advocacy groups are beginning to question how community reinvestment and anti-redlining statutes might be applied, if at all.

Golden Credit Card Trust Series 2016-3 and 2016-4 will each include three classes of notes with the size of the issuance to be determined. The floating-rate Class A notes have been given an early ‘AAA’ rating by Fitch for each series, and will be offered in a rule 144A sale in the United States.

Ford issued its second ABS pool of retail auto loans this year in its $1.32 billion Ford Credit Auto Owner Trust 2016-B platform, which is the automaker’s fourth overall Reg AB II-compliant transaction. Nissan is looking to price the Nissan Auto Receivables 2016-B Owner Trust that will market $1.2 billion in notes of new and used prime auto loans.

The prodigious growth of marketplace lending has been fueled by the seemingly insatiable appetite of hedge funds and other yield-hungry investors. But in recent months, much of that institutional money has fled the market just as quickly as it arrived.

Morningstar has issued preliminary ratings on a small pool of $59.7 million in prime- and subprime-rated motorcycle loans through ThunderRoad Motorcycle Trust 2016-1.

Federal appeals court judges hearing a case challenging the constitutionality of the Consumer Financial Protection Bureau appeared highly receptive to arguments that the agency's single-director structure violates the Constitution.