Though total ABS issuance shows a decline of 5% year over year, auto ABS is up 19% with nearly $102 billion of issuance to date due to stronger than expected 1H vehicle sales. With six deals currently in the queue, issuance activity is expected to remain robust in September. If the United Auto Workers (UAW) strike is prolonged, ABS issuance may feel an impact. Credit union securitizations are on the rise—with three deals totaling $793 million so far in 2023, following $760 million in 2022—and are expected to gain in popularity. 

By collecting, storing, and processing data to support the platforms and services that support the digital world, data centers play a critical role in the day-to-day functioning of the internet. Remote work and learning, smart technologies, cloud services, and media and social media all added to the increase in global internet traffic—30% annual growth since 2018. Future demand is expected to drive this growth even higher. Data Centers have sought funding from CMBS and CRE CLOs since 2013 and from ABS since 2018, with $6.2 billion of ABS backed by data center revenue issued in 2021.

With 36 states having enacted renewable and clean energy goals, securing adequate financing is crucial in states’ efforts to transition effectively. Securitization, through the issuance of Rate Reduction Bonds (RRBs) is increasingly being used to fund these transition cost.