Daily News: March 10, 2014

Capital One Survey: ABS Professionals Anticipate Competition

A recent Capital One Bank survey found that 65% of asset-backed securities professionals expect competition to increase in 2014. Capital One surveyed professionals from various asset classes at ABS Vegas 2014 to gauge their attitudes and opinions related to industry issues in the coming year.

An overwhelming majority (82%) of those surveyed expect increased regulatory requirements and associated expenses to be the most significant risk to their businesses in 2014, far exceeding other potential concerns such as limited access to credit (12%) and increased taxation (6%).

Most respondents have a positive outlook on credit quality; 76% expect credit quality to hold steady or improve in 2014. Respondents anticipate the greatest industry growth to take place in commercial loans (22%), residential mortgage finance (20%), equipment finance (17%) and esoterics (17%). In addition, 89% expect securitization market opportunities and developments to impact their business in 2014.

“A significant portion of the asset-backed securities professionals we surveyed anticipate increased regulatory requirements in the coming year,” said David Kucera, managing director, Commercial and Specialty Finance at Capital One Bank. “However, our survey also indicates a positive outlook on credit quality and a majority of these professionals predict increased competition. Our team of banking professionals stands ready to provide the customized financing and growth solutions that companies need for continued success.”

“Both traditional warehousing and securitization volumes are anticipated to increase throughout 2014 in a variety of asset classes,” noted Michael Szwajkowski, EVP, Commercial and Specialty Finance at Capital One Bank. “Capital One Bank is committed to supporting these companies and professionals as they take on the new challenges and opportunities of the coming year.”

Capital One Bank conducted a proprietary survey of conference attendees at ABS Vegas 2014 in Las Vegas. Survey participants included professionals from various asset classes within the asset-backed securities industry, including auto finance, commercial loans, credit card debt, equipment finance, esoteric/off-the-run, residential mortgage finance and other consumer debt. Percentages are based on 121 responses.