Innovation returns to whole biz ABS universe

By Jennifer Kang
18 Feb 2021

Innovation and yield are returning to the franchise ABS sector as US market conditions improve, much to investors’ delight. Issuers beyond the typical restaurant franchises that dominate supply are eyeing entry into the securitization market, starting with home improvement companies.

The coronavirus pandemic stopped the growth streak in the franchise ABS market that began in 2019, when 13 deals totalling $9bn were priced. Last year the market more than halved by volume, as 10 deals brought supply of $4bn.

The sharp decline was inevitable, given stay-at-home edicts ...

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