Green auto ABS deals represented $3.5 billion of the $29 billion issuer-designated ESG securitizations in 2021. Proceeds from these deals financed the purchase of green vehicles at Tesla and Toyota, the inaugural issuers of green auto ABS deals, by financing low- or zero-GHG-emissions vehicles.
The Federal Reserve’s Z.1 data report, released on December 9, showed household net worth rose to $145 trillion and now stands 54% above its level five years ago.
Credit ratings activity has been overwhelmingly positive for the U.S. securitization market as upgrades have easily exceeded downgrades, in 2021, according to Moody’s Investors Service.
Non-agency RMBS is on track to surpass $200 billion, a record for the sector. Of that total, $17 billion, or 9% of the non-agency RMBS market is backed by agency-eligible investor mortgages, according to Deutsche Bank Securitization Research.
On October 18 FHFA Acting Director Sandra L. Thompson announced that the temporary use of desktop appraisals, adopted during the Covid-19 crisis, would become a permanent option. The FHFA is also considering the risks and benefits of the increased use of appraisal waivers, up more than 6.9 times the average level in 2018, as it continues to modernize the appraisal process.
As the broader shipping industry continues to be buffeted by supply chain complexities, container lease ABS have been buoyed by the rebound in global trade as demand for shipping containers has kept lease rates at all-time highs.
New-issue activity in September reached $92 billion, the strongest month of issuance for non-agency RMBS, CMBS, ABS and CLOs, to date in 2021. Another $23 billion issued in the first two weeks of October helped volume reach $710 billion, surpassing in under 10 months the level reached for the entire year of 2019
Close to 9 million Americans still impacted by pandemic-related unemployment saw the end of benefits on Labor Day. Federal Reserve research suggests that this support, while it was available, was used to pay down debt and stay current on bills.
On August 26, the Supreme Court upheld a ruling to vacate the CDC’s eviction moratorium. This pandemic assistance program, which has primarily benefited lower-income households, has helped households stay current on their debt obligations despite elevated levels of unemployment.
This week’s Research Corner depicts how non-agency RMBS issuance is on track for a new post-2008 record. Year-to-date, new issue has reached $119 billion, surpassing 2020’s full-year volume and just 12% below 2019’s record year. Building that momentum, strong contributions come from prime jumbo non-QM ($39.1 billion) and re-performing/non-performing non-QM loans ($23.6 billion).
