Truist Securities projects asset-backed securities sales up 15% this year
Summary
Asset-backed securities sales are projected to increase by up to 15% this year, as risk premiums on these bonds tighten, according to Truist Securities. This rise is supported by stable credit performance across consumer asset classes, which underpins activity in the asset-backed securities market. Additionally, the tightening of risk premiums is facilitating more favorable borrowing conditions for issuers of structured finance products, reflecting strong investor demand in the current market environment.
Analysis
Truist Securities: Truist Securities is the investment banking and capital markets arm of Truist Financial Corporation, providing underwriting, advisory, and trading services with a focus on debt and securitized products. Its securitized products group recently issued an analysis projecting stronger asset-backed securities issuance in 2026 amid narrowing spreads on the bonds. Investor Demand: Structured finance offerings are experiencing consistent absorption by investors amid supportive technical conditions. Spread Environment: Tightening risk premiums are creating more favorable borrowing conditions for issuers of structured finance products. Market Fundamentals: Stable credit performance across consumer asset classes continues to underpin activity in asset-backed securities.
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Related sources
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- https://doubleline.com/wp-content/uploads/DoubleLine-Securitized-Products-Briefing.pdf
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- https://www.bloomberg.com/news/articles/2026-09-21/truist-sees-abs-sales-climbing-15-this-year-as-spreads-narrow
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