Securitization runs hard to keep up with the US consumer

[...]where real estate backed securitizations are declining, there are some bright spots in the burgeoning market for consumer ABS deals. Since the financial crisis, homeownership among those aged 25-34 has declined to 37%, versus 45.4% for Gen Xers and 45% for Baby Boomers when they were the same a...

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Bibliographic Details
Published in:Global Capital 2018-12
Main Author: Medway, Sam
Format: Article
Language:English
Subjects:
Affordable housing
Asset backed securities
Baby boomers
Capital markets
Commercial real estate
Consumer credit
Delinquency
Economic crisis
Government sponsored enterprises
Home ownership
Homeowners
Loans
Mortgage backed securities
Real estate financing
Securitization
Shopping
Trends
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Summary:[...]where real estate backed securitizations are declining, there are some bright spots in the burgeoning market for consumer ABS deals. Since the financial crisis, homeownership among those aged 25-34 has declined to 37%, versus 45.4% for Gen Xers and 45% for Baby Boomers when they were the same age, according to the Urban Institute’s Housing Finance Policy Center in its Millennial Homeownership report. According to data from Trepp, delinquency rates for retail CMBS loans have declined over the past 12 months to 5.55% from 6.63%. Despite the widespread shifts in how people live and work, securitization has adapted, and while lenders are not as keen to up their exposure to consumer credit risk, especially when it comes to real estate finance, there is ample evidence that they are still willing to participate in funding the real economy.
ISSN:2055-2165