Standard & Poor’s has found fresh evidence supporting its view that originators of consumer asset-backed securities will sustain issuance into the fourth quarter.
Rising levels of consumer credit as reported by the Federal Reserve should keep volumes at roughly the same pace as in the first three quarters, the agency said.
Consumer credit rose $18 billion in August, an 8% annual increase on a seasonally adjusted basis. Revolving debt crept up $4.2 billion following a $4.8 billion dip in July, while nonrevolving credit — covering student and auto loans — added to July’s gains, climbing by $14 billion.
