Consumer ABS

Two years after the federal government largely took over the student loan market, the remaining banks in the industry are bracing for another shakeup.

Credit cards and autos are filling up the ABS up the ABS pike this week. GE Capital is in the market with GE Capital Credit Card Master Note Trust Series 2012-. The offered notes on the deal are $457.7 million.

The consumer credit rise in February was mostly from auto loans, which is likely to support ABS issuance from the sector in the coming months, Standard & Poor's analysts stated in a report released today.

Auto ABS are gearing up for another busy week with some deals in the pike. A credit card deal is also coming to market.

Bank of America has filed with the Securities and Exchange Commission to issue an auto transaction under its Bank of America Auto Trust 2012-1. The deal is worth almost $1.8 billion.

Surveys show that what Americans want most is a good job, no surprise there. Over the last few decades, the best jobs have been in the public sector and those requiring a college degree. But the productivity of a growing public sector already suffers from rising costs and diminishing returns that impede economic growth, as in Greece where public sector employment doubled in the last decade or in Spain, where youth unemployment is 50%.Even many college degrees have already passed the point of diminishing returns, as presidential candidate Rick Santorum recently inarticulately expressed. About 30% of high school grads attained a college degree during the past decade and enrollments continue to rise. But according to the Labor Department BLS forecast fewer than a quarter of all new jobs created this decade will require one. The flip side of the surplus of college educated job-seekers is the shortage of skilled workers requiring only a high school diploma, as one third of the students in public high schools don't graduate.

Ally Bank is set to sell a $500 million flooplan deal under its Ally Master Owner Trust. The transaction is backed by new and used car inventory and light and medium duty truck and van inventory.

Moody's Investors Service today examined the proposed legislation that changes the bankruptcy law to make some types of student loans dischargeable in bankruptcy.

Global structured finance issuance's modest pace in 1Q12 is credit positive for new-issuance in these products that include ABS, RMBS, CMBS and CLOs, according to an emailed note from Standard & Poor's this morning.

A new $750 million securitization of credit card receivables from the Penarth receivables trust was announced this week.