SFA Research Corner: Credit Card and Auto ABS—Mostly Ready for Economic Challenges
article by SFA
In the first three weeks of 2024, over $21 billion in new ABS deals were issued, with 82% ($18 billion) attributed to consumer-related transactions. Despite some ABS trusts showing weaker performance, investor interest in consumer ABS remains strong, supported by robust structures designed to withstand the expected softer economic conditions of 2024. A study from the Federal Reserve Bank of Philadelphia reveals that delinquency rates for credit cards issued by large banks now surpass pre-pandemic levels, nearing highs last seen in 2012.