Sometimes the thought of diminished ABS issuance, whether one sector or the whole business, rubs people the wrong way. It conjures up thoughts of sluggish productivity, and no one wants such a condition to go on for very long.

Auto loan ABS issuance has dropped off dramatically this year, in line with general industry expectations. Using preliminary numbers, the Dominion Bond Rating Service estimates that total auto loan ABS issuance was down 25% as of May 24, 2007, compared with the year before. One possible cause for the decline: Prime auto loan issuance dropped 45% for the same period, compared with last year.

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