Consumer ABS Market Update

Monthly Commentary

April 06, 2016


  • Primary issuance slowed to $11B in March with 65% of the issuance related to autos
  • A few highlights include:
    • Element Rail priced a $422mm transaction with the 3.6yr A rated senior bond pricing at 275/n and the 7.0yr at 350/n, yielding 4% and 5%, respectively. The deal is backed by leases on railcars
    • OneMain, an originator of unsecured consumer loans to mostly subprime borrowers, issued an $890mm transaction. The 2.6yr senior bond priced at 300/n, yielding 4.1%
    • CHAI issued a $278mm deal consisting of marketplace lending loans originated by Prosper. The 1yr priced at 400/e


  • Total volume of 4.4B traded in the secondary according to JPM. Prime auto and cards traded well during the month with spreads remaining firm to a few bps tighter. Spreads in FFELP generally remain sideways as the market continues to wait for clarity around rating agencies action

Market / Consumer News

  • Navient amended the legal final maturity on a FFELP securitization totaling $150mm
  • The CFPB announced that it was now accepting complaints from consumers experiencing problems with loans from marketplace lenders
  • Outstanding consumer credit rose to 3.54T, an increase of 3.6% on an annualized basis according to the Federal Reserve
  • Fitch reported subprime auto delinquencies of 60 days or more reached 5.2% and annualized net losses reached 9.7%. The peak level of annualized net losses reached 13.1% during the financial crisis


Source: JPMorgan Research

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