US Congress inaction to hurt consumer ABS performance

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By Jennifer Kang
12 Oct 2020

Consumer ABS performance is expected to slide as Congress negotiations for the next Coronavirus Aid, Relief, and Economic Security (CARES) Act remain in limbo. Sectors such as auto and credit card ABS may see more obligors previously shielded by government support falling into late stage delinquencies, sources said.

The “soap opera” of the next stimulus package continued over the weekend, said Russell Shor, senior market specialist at Forex Capital Markets (FXCM), a retail broker based in London.

Last Friday, the White House pushed through a $1.8tn stimulus proposal to House Speaker Nancy Pelosi and the ...

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