Consumer ABS

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.

In the ASR Scorecards database's preliminary public lead manager rankings for 2Q12, JPMorgan Securities grabbed the top slot with $14.5 billion sold and an 18.9% market share. It climbed one spot from 2Q11 with a 16.0% market share and $5.2 billion sold. ASR's 2Q12 numbers are as of June 26, while its 2Q11 numbers are as of June 30, 2011.

>Officially launched during the Global ABS confrence in mid-June, the initiative of prime collateralized securities (PCS) could provide the stimulus to issuance for which European players have been waiting.

Proposed bank capital rules are likely to both benefit and crimp the securitization market, potentially making highly rated transactions less attractive while having uneven effects on different asset classes.

Credit card securitization is likely to surpass its $20 billion forecast this year, although the sector still faces competition from cheaper funding options, Standard & Poor's analysts said in an emailed report today.

The current U.S. subprime auto lending market is developing a resemblance to its condition in the early- and mid-1990s, according to a report released yesterday by Moody's Investors Service.

BMW Financial Services is readying a new securitization of auto loan receivables, according to a new shelf registration the company filed with the Securities and Exchange Commission (SEC) today. For the full filing, please click this link.

Standard & Poor’s believes that the current positive trends in the U.S. auto sector will continue into 2H12. They expect ABS issuance in auto-related collateral to exceed their $80 billion forecast this year.

JPMorgan analysts said that the majority of consumer ABS asset classes have continuously exhibited solid collateral performance after the crisis, including timeshare ABS.