Peering Under the Hood of Auto and Credit Card ABS: Insights into US Consumer Resilience

March 17, 2025 — In previous Notes, we have explored asset-backed securities (ABS) backed by data centers and critical AI infrastructure. In this week’s edition, we shift our focus to another critical segment of the ABS market: those tied to consumer loans, such as credit cards and auto loans. Despite recent weakness, the long-term health of the US consumer remains robust, and this resilience is mirrored in the performance of ABS, which have benefited from significant structural changes in underwriting standards and ABS structures.