Consumer ABS

Direct lenders are trying to get their hands on consumer loans, cutting into banks' business and taking advantage of the sometimes volatile market for asset-backed debt.

The $500 million in notes from the current deal are part of a multi-issuance series consisting of classes A, B, C, and D, with a 21.00% level of credit enhancement on the class A notes.

Direct lenders offer almost guaranteed funding at a time when borrowing in the $1.6 trillion U.S. ABS markets is increasingly unpredictable, and banks nurse losses.

First social bond will serve rural borrowers who mostly earn under $50,000 in net income per year.

Charge-off and payment rates had improved, due to consumer assistance programs and government stimulus funds amid COVID-19 economic slowdowns.

Over time, the MFIT securitizations have been getting larger in dollar volume, pricing at tighter spreads, and benefiting from more subordination.

The trust excludes loans from about six states with active legislation addressing the exporting of usury rates to out-of-state borrowers.

Affirm Asset Securitization Trust 2021-B, is the company’s sixth rated term ABS. Observers expect to see more point-of-sale consumer loan asset ABS.

After its founding in February 2012, the company has come to market 25 previous times for capital to support its business.

Avant Loans Funding Trust 2021-REV1 is a $200 million note offering backed by loans underwritten through its Avant platform. The $500 million OneMain Financial Issuance Trust 2021-1 is the first deal of the year for OneMain, which has previously issued 23 consumer loan securitizations and five auto-loan ABS deals.