Consumer ABS

The default rate of securitized private non-guaranteed student loans will be stable but high this year, according to a report released by Moody's Investors Service this morning.

The U.S. ABS market's post-July 4 issuance is a mix with Wyndham Worldwide Corp. and Sallie Mae joining two auto transactions from Hyundai Motor Co. and World Omni Financial Corp.

Today the European Central Bank's (ECB) governing council announced how the mandatory provision of loan-by-loan ABS data will be introduced into the securitization single loan-level data repository known as the European DataWarehouse.

U.S. credit card delinquencies reflect the significant improvement of the card sector over the last two years, according to Fitch Ratings.

The European Bank for Reconstruction and Development (EBRD)said today in a press release that it has invested $50 million in the first securitization made by a Russian private bank since the beginning of the financial crisis.

Congress on Friday approved an omnibus transportation bill that also included a five-year extension of the National Flood Insurance Program and a one-year extension of the low rates on federally guaranteed student loans.

In their recent Consumer ABS Weekly, Citigroup Global Market analysts said that the eight to 10 basis point concession for two– to three-year equipment lease ABS is attractive versus auto ABS. They also expect more spread differential compression between these sectors.

The Consumer Finance Protection Bureau (CFPB) doesn't have a direct mandate over the securitization industry, yet it is one of the biggest regulatory wildcards, particularly for deals backed by residential mortgages in the foreseeable future.

Securitization market executives may want to reconsider their summer vacation plans. Not only are significant rules stemming from the Dodd-Frank Wall Street Reform and Consumer Protection Act likely to be issued soon, but an earlier proposal amending Regulation AB, which had been put on the backburner, may be finalized over the next few months.

ABCP looms large among the victims of Moody's bank downgrades on June 21. Some of these banks support ABCP conduits, which, in turn, saw their ratings drop. And in ABCP land, that single grade difference can make or break a conduit. It's because money market funds - ABCP's biggest investors - can only buy 'P-1' paper.