Consumer ABS

Credit card holders are keeping a lid on spending, and banks are flush with cheap deposits to fund new accounts. These might not seem like the ideal conditions for credit card securitization to take off, but that's just what is happening.

In a clear sign that everyone's getting more comfortable with ABS, JPMorgan analysts reported that about $18 billion was issued in the market during the first three weeks of September.

The ASR Scorecards database's preliminary public lead manager rankings for 3Q12 showed JPMorgan Securities taking the top spot with $22.7 billion sold and an 18.5% market share.

The low interest rate environment and demand for high-quality, short-duration paper continued to fuel demand for auto ABS and other consumer assets in September. The market absorbed $18 billion of new issuance through Sept. 17, according to a JPMorgan Securities report published on that date.

Aggregate prime auto loan exhibited slightly weakened performance, although remained in line with historical seasonal trends, Barclays Capital analysts said.

Santander Consumer USA is planning to issue a subprime auto securitization called Santander Drive Auto Receivables Trust 2012-6 worth $1.25 billion.

CarMax and Huntington are both planning to sell their respective auto securitizations.

Citibank plans to launch a new securitization deal from its Citibank Credit Card Issuance Trust, according to an SEC registration the bank filed today.

The ABS industry right now is very focused on the October 12, changes the U.S. Commodity Futures Trading Commission plans to make that would render deals "commodity pools".