Reported 4 months ago
Sales of asset-backed securities, including those backed by auto loans, airplane leases, and restaurant fees, have reached a record $316 billion, exceeding the previous post-financial crisis peak. This surge is driven by banks offloading loans due to new capital regulations and increasing demand from investors, particularly insurance companies seeking higher yields. Notably, sales of exotic asset-backed securities tied to unconventional assets have also surged, highlighting a growing interest from investors in diverse collateral types.
Source: YAHOO