Equipment asset-backed securities (ABS) continue to be a favored asset class with a growing and diverse investor base. The volume in the public equipment-backed market has been fairly steady and is expected to be $12 billion-$13 billion for this year. The issuance in the first half of 2000 was higher than in the first half of 1999 primarily due to the timing of a couple of large issuances this year.
The investor base for equipment ABS continues to grow as the asset class becomes better understood. Because the collateral underlying equipment ABS is commercial obligations (and generally essential-use/revenue-producing equipment), many investors feel equipment ABS provide good diversification against consumer exposure.