Fitch: U.S. ABCP Portfolios Exhibit Consistent Characteristics
OREANDA-NEWS. ABCP conduits remain a significant source of funding for core bank clients and provide a valuable offering for investors. Collateral compositions, credit quality and performance measures remain strong and transaction structures robust, according to Fitch Ratings U.S. ABCP Portfolio Review Summary.
Last month, Fitch affirmed 17 U.S. ABCP programs following the completion of its annual portfolio review. The rating actions were based on a review of the conduits' portfolio compositions and the vehicles' credit and structural protections such as transaction-specific and program-wide credit and liquidity support.
Outstandings across the 17 programs totaled $102 billion. Auto and commercial, trade receivables, credit cards and student loans account for most of the conduit holdings. Facility utilization rates across the portfolio were up from last year at 69%.
The results of Fitch's U.S. ABCP portfolio review summary are generally consistent with observed market activity over the last several years. The report includes a review of trends in ABCP outstandings, portfolio compositions and facility utilization rates.
Fitch's credit outlook for U.S. ABCP for the remainder of 2016 remains stable. This is consistent with the outlook for the financial institutions that act as liquidity support and credit enhancement providers. ABCP rating actions, if taken, will most likely reflect the health of sponsors, support providers, and other relevant counterparties.
Комментарии