SFA Research Corner: ABS Issuance Soars: SRT Interest Grows, But Cash ABS Remains King
article by Structured Finance Association
In 2024, credit-linked notes added $1.6 billion to ABS issuance, predominantly tied to prime auto loans, with one transaction referencing student loans—the first of its kind. While SRTs are likely to grow under Basel III, cash ABS dominates. By September, ABS issuance hit $239 billion, up 26%, driven by student loans (+68%) and auto ABS (+16%). Demand remains strong, with tightening credit spreads indicating market stability.