Another Pickup in Commercial & Consumer-Based ABS

As asset-backed securities continue to make a comeback, it seems the subprime crisis is but a distant memory on the street. Some of the change can certainly be due to the improvement in delinquencies on consumer debt, according to the Wall Street Journal. And, as the space grows, so too are the opps.

MarketAxess, for one, is taking advantage of the turnaround, recently launching electronic trading in consumer-based asset-backed securities, including such things as credit cards, student loans, equipment leases and more.

A slew of top level hires are also indicative of the interest, with firms and banks rushing back into the ABS space. Bank of America Merrill Lynch Global Research announced the addition of former JPMorgan Chase exec Alan Todd as their new head of U.S. commercial mortgage-backed securities research.

The top level exec shuffle is a big sign of a sector pickup. Barclays Capital picked up key hires on its ABS team, according to Bloomberg. Back in March, the Wall Street Journal reported that Credit Suisse snagged former Barclays Capital's Jay Kim, adding him to its ABS team.

Janus Capital Group announced it had hired John Kerschner to head its securitized products for their fixed income investment team. But as lawmakers haggle over proposed risk retention rules for securitizers, there is some cause for concern. It's likely hiring will plateau at some point.