Consumer ABS

The SLABS market mostly ignored the recent negative headlines that included a legislative proposal allowing private student loans to be discharged in bankruptcy, Bank of America Merrill Lynch analysts stated in a report released late Friday.

Moody's Investors Service has pointed out in a report released late yesterday that the overall level of credit risk in the structured market is inching up. The rating agency predicted that the easing of credit that happened in 2011 will continue into 2012 and beyond.

Recent increases in auto sales are a harbinger for higher auto ABS issuance in the upcoming months, according to an emailed note this morning from Standard & Poor's.

Prime credit card ABS performance improved in February without near-term challenges apparent. However, retail card results came in mixed, reported the latest index results from Fitch Ratings.

Auto companies are lining up their multiple asset-backed offerings this week. Equipment ABS issuers are also joining the mix of automobile securitizations.

Almost a year after credit card loans hit bottom, banks have given little slack in credit lines.

Auto sales are gaining strength, which can further boost auto securitization issuance, analysts stated.

Continental Airlines this afternoon sold $892.14 million of passthrough certificates through a deal called Continental Airlines 2012-1 EETC.

General Electric Capital Corp. (GE) is going to issue under its GE Equipment Transportation LLC, Series 2012-1. The deal will be sized at $716.5 million, according to a Securities and Exchange Commission (SEC) filing on the offering.

In a regulatory filing today, Ally Bank has upsized its previously $1 billion auto ABS to $1.7 billion. The deal is rated by Fitch Ratings and Moody's Investors Service.