RT Journal Article
SR Electronic
T1 Risks and Opportunities in the ABS Sector
JF The Journal of Structured Finance
FD Institutional Investor Journals
SP 143
OP 147
DO 10.3905/jsf.2012.17.4.143
VO 17
IS 4
A1 Kishore Yalamanchili
YR 2012
UL https://pm-research.com/content/17/4/143.abstract
AB The ABS sector has recovered well from the depths of credit crisis and is functioning relatively well. The risks facing investors are manageable; however, investors should exercise caution while dealing with off-the-run ABS and lower-rated tranches. Although it remains strong, collateral performance will weaken at some point. In addition, some of the positive credit trends, such as the high recoveries on used cars, may not last forever. Investors should be on guard against subordination levels declining in the face of increasing demand for the deals.TOPICS: Credit risk management, asset-backed securities (ABS)