February Posts $48bn as Volatility Subsided (Erb/Manzi)
U.S. Structured Finance (SF) Issuance picked up in February as the market volatility that characterized much of the Dec./Jan. period subsided. Led by the ABS and CMBS sectors, February issuance totaled $48bn, up from $32bn in Jan. Total new issue volume for the first two months of the year was $80bn, down about 7% from the same period in 2018.
ABS issuance was $23bn in February. Accounting for over half of that figure was auto ABS, which came in at nearly $14bn. February auto ABS issuance was over double last February’s total. On a YTD basis however, 2019 auto ABS issuance is only slightly ahead of last year’s figure because of the aforementioned slow January. YTD ABS issuance reached a little over $40bn this month, down from $43bn last year. To view our latest ABS commentaries, including a 10-year retrospective on auto ABS, a whole business ABS frequently asked questions paper, and a look at the true lender conundrum in marketplace lending, click here. For the latest auto loan ABS tracker, click here.
CLO new issuance was $13bn in February. On a YTD basis, overall CLO new issuance reached $18bn this month, down 14% from 2018's result. CLO resets and refi’s have been much lower this year and are currently at less than $5bn in issuance, down about 80% on a YTD basis. Click here to view our recent CLO publications.
Led by strong conduit issuance, February CMBS new issue volume totaled $6bn, doubling the January figure. Conduit issuance was $5bn in February versus none in Jan. YTD CMBS issuance is just over $9bn, down about $1bn from 2018’s figure. (Note: We do not include CRE CLOs in our CMBS totals.) Click here to view our recent CMBS publications.
Following nearly $6bn issuance in February, Private Label RMBS issuance is now $12bn YTD, up 5% y/y, and the only major sector that can claim a gain so far this year. Non-QM issuance YTD is up nearly $3bn from last year’s figure, which was just over $1bn. Click here to read our recent RMBS related publications including Will the Froth in the U.S. Housing Market Bubble Over? We Think Not.
Turning to the Numbers...
The 10yr Treasury was 2.75% for the week ending March 1, up from 2.65% last week. NYMEX crude oil was down $1.51 w/w to $55.75. U.S. regular gas prices averaged $2.42 this week, up 4 cents w/w and down 12 cents y/y. The S&P 500 was up 0.39% w/w to 2803.69. The 30-year fixed-rate mortgage was unchanged w/w at 4.35% (down 8bps y/y). The Euro was trading at $1.1367, up $0.0032 w/w.
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