Investors Bullish on Auto ABS and Credit Card ABS

The Wall Street Journal reports that investors, encouraged by the debt-ceiling deal and improved banking news, are more enthusiastic about consumer ABS. Yields have declined on these asset classes relative to Treasuries amid strong stock index performance, signaling Wall Street’s optimism that consumers will continue to weather inflation with minimal distress. Referencing JPMorgan’s analysis of the bank’s customer base, WSJ opines that Wall Street is “laying bets that most American borrowers will sail through.”  Read More.