Consumer ABS

The securitization investor class of 2013 is likely to be the most geographically diverse group since before the onset of the financial crisis.

Sallie Mae plans to issue a $1.2 billion securitization of Federal Family Education Loan Program (FFELP) loans.

Investors no longer feel limited to their own country for securitization investment opportunities; they are becoming comfortable with the risks and rewards of investing in and owning a global book.

The consumer ABS market got off to a strong start in January, with the auto sector once again leading the way; issuance was up on the year, and spreads narrowed, led by subordinated bonds.

GreatAmerica Financial Services plans a $378million equipment lease ABS transaction, backed by small ticket technology equipment.

Spreads on asset-backed securities narrowed sharply across the board in 2012, but some sectors are already looking rich, according to participants at the ASF 2013 conference.

The Royal Bank of Canada expanded the capability of its existing consumer and commercial auto financing business with its $4.1 billion purchase of Ally Financial’s Canadian auto finance business.

Many sectors of the market are rallying, investors have returned, enthusiasm is running

Spreads on asset-backed securities narrowed sharply across the board in 2012; as justified as this was, some sectors are already looking rich, according to participants at the ASF 2013 conference.

Do not expect much securitization activity out of Europe this year, said participants in a panel at the American Securitization Forum’s 2013 conference.