U.S. ABS securitization issuance was $180 billion in 2013, down 3% from 2012, according to Thomson Reuters data. However US CDO/CLO issuance in 2013 was up to $75 billion, a 74.8% growth from the $42 billion issued in 2012.
According to Deutsche Bank’s 2014 outlook report, Autos contributed approximately $89 billion of new issue ABS to the 2013 market. Approximately $21 billion, or 24%, of the auto ABS supply is backed by subprime loans while prime auto loans continue to make up the lion’s share, with 43%, or $38 billion of 2013 total volumes.
This compares to 2012 when subprime and prime auto loans made up 20%, and 48%, respectively. Another area of growth was auto lease ABS, which increased 19% year over year.
Credit card ABS accounted for $32.8 billion of 2013 consumer ABS issuance, 15% behind 2012’s robust supply according to Deutsche Bank figures.
Student loan ABS issuance totaled $20.7 billion in 2013. Of that total, $3.3 billion was backed by private student loans, and $17.4 was backed by FFELP loans. Sallie Mae led the way with $9.8 billion of issuance across 11 deals.
The growth in CDO/CLO issuance contributed to strong global ABS volumes. Globally, issuance in the CDO/CLO sector was up to $83 billion, a 78.5% growth from 2012’s $47 billion total issuance, according to Thomson Reuters. This contributed to overall growth of 5.5% growth in total global ABS issuance in 2013.
On the global consumer ABS side, volumes in 2013 lagged behind 2012 yearend volumes. According to Thomson Reuters, in 2013 issuance came in at $268 billion compared to $286 billion issued in 2012.