ABS

Both Moody's and DBRS Morningstar project elevated credit-loss levels for the auto lender, compared to prior deals, due to COVID-19 uncertainties

Deals, trends and research in structured finance and asset-backed securities for the week of Aug. 28-Sept.3

The captive-finance arm of General Motors is the first automotive lender this year to launch a securitization to finance inventories as dealerships rebound from COVID-19-related economic stresses.

The share of 78-month loans is at 14.9%, compared to approximately 10% in World Omni's previous issuance from its subprime/nonprime shelf.

Although the 3.41% forbearance rate is down from two prior Navient refi deals, it remains far above what has been the low historical payment deferral and workout rate for its refinancing program for advanced-degree professionals.

In its sixth securitization of 2020, IPFS Corp. is pursuing a $400 million deal backed by a revolving pool of insurance-premium finance loans and secured by the right to receive the unearned premium amounts from the loans.

Verizon is launching its 12th securitization of device payment-plan agreements, marking its second asset-backed issuance this year.

The ongoing pandemic and the resulting weak global economy will lead to tighter-than-expected underwriting of structured transactions and continue to weaken their performance, but investors are nevertheless starting to open their arms to more risk.

Managers of funds investing in asset-backed securities (ABS) that dislike the work-from-home (WFH) environment common since the onset of the coronavirus had better learn to adapt, because the situation will most likely continue for a while.

The COVID-19 pandemic’s longer-term impact on residential mortgage-backed securities remains uncertain, but for now DBRS Morningstar’s outlook for the residential property assessed clean energy asset-backed securities sector remains stable.

Driven Brands is preparing a $175 million asset-backed securities deal that will provide investors with exposure to a relatively safe industry during the coronavirus pandemic.

With the coronavirus pandemic and several other factors pointing to increasing consumer demand for wireless data access and content, Diamond Communications’ current securitization includes a sizable acquisition account that may introduce new assets to the securitization pool.

Asset manager PGIM Inc. is looking to at least triple its investments in the growing direct lending market where it wants to compete with banks to fund mid-size companies outside of the buyout space.

Her speaking engagement is the highlight of a deep dive into politics for the second day of the four-day industry confab.

First-day panelists at the Structured Finance Association's annual ABS industry conference in Las Vegas speculate on securitization's potential as a new financing mechanism for oil and gas operators.

Historically low interest rates, low unemployment and positive yet slowing economic growth will support stable U.S. structured finance asset performance in 2020.

Impact investing has long centered on environmental and social purpose, but governance could make huge strides as an ESG consideration in 2020.

According to a press release, the securitized loans “primarily” consist of Asia-Pacific and other loans not normally included in the company's rated ABS transactions.

Banks and lenders have made inroads in analytics and automation with machine-learning technology. Will asset management follow suit?

Prosper Marketplace Issuance Trust, 2019-4, is counting on a de-leverage transaction structure that will boost its credit enhancement levels over time, as it seeks to sell $138 million in securities backed by unsecured consumer loans.