van Duyn: consumer securitization revival

Even after the Fed's programme - the Talf - ended in March, several new securities backed by auto loans and other types of receivables have been sold to investors. Yet asset-backed securities (ABS) markets remain a fraction of their former selves - limiting the availability of credit.

Global ABS volumes, which excludes mortgage-backed securities, year-to-date are at their lowest since 1995, according to Dealogic. This is down even from 2009 - when many capital markets were still in crisis - and is 90 per cent lower than the $349bn raised in 2007. Uncertainty about future regulations and the lack of investor confidence in these types of securities continues...