Market talking up new franchise ABS issuer

A new issuer in the franchise sector is expected to enter the term ABS market possibly before year end, market sources said.

The distressed sector has been rife with speculation over increased activity, but the talk has yielded little more that idle hearsay to date. However, those familiar with the situation believe the as yet unnamed issuer to be a solid candidate, given its origination history. "This is not a newly established entity," a source said, adding that rating agencies might see as many as 10 franchise prospects in a given year, a majority of which are small start-ups with a scant origination history that never make it to the term market.