U.S. ABS Market Outlook

the u.s. abs market outlook for 2018 to 2032 is looking promising with several new initiatives already in place. the implementation of the dodd-frank act and the consumer financial protection bureau (cfpb) offer increased consumer protections and additional oversight of securitization activities. as a result, investors have greater assurances of the safety of their investments in the abs market. in addition, the new accounting rules for credit losses (accounting standards codification 326) and the updates to global accounting standards have resulted in higher credit quality and greater transparency in the abs market. these changes provide investors with increased visibility into and better pricing for the abs securities they own. the growth of the abs market is further aided by the recent passage of the tax cuts and jobs act which has created a thriving and competitive market for private-label mbs and abs securities. additionally, the rising interest in securitization of assets such as auto loans, consumer debt, student loans, and other asset classes has shown the growing potential of the abs market. new players in the abs market such as peer-to-peer lending networks, online lenders, and venture capitalists have identified securitization as a profitable way of making returns on their capital. finally, with the proliferation of “big data”, new analytical tools and software programs are being developed and used to better understand the proprietary abs market, resulting in improved pricing and credit assessments, as well as more efficient securitization methods. this improved data availability and better understanding of the market further increase the potential for higher returns and greater returns on abs investments. overall, the future of the u.s. abs market is bright with a number of positive developments taking place. with greater consumer protection and increased transparency, the market offers a unique opportunity for investors to benefit from the steady growth in the securitization market.