Channel’s market commentary – w/c 28 September 2026

Market insights for the week commencing 28th September 2026

USA: The US ABS market is running ahead of last year. JPMorgan data show $274bn of supply year to date, up from $253bn YoY, with consumer up about 20% and aircraft ABS nearly doubling. Goldman noted this week that data-center ABS is maturing, with AAA and AA tranches now a much bigger share of issuance. Upstart's $400m 2026-4 deal, its 52nd securitisation, shows how repeatable the ABS platforms have become. Not every corner is comfortable: a Bloomberg analysis of the $104bn subprime auto market shows signs of borrower stress. Europe: September has been one of the busiest stretches of the year for public securitisation issuers, with strong order books on most deals. UK mezzanine is still pricing tight, while some euro senior notes have priced wider YoY. KBRA had forecast roughly €287bn of European issuance in 2026, a modest rise on the 2025 record, and demand so far suggests that is achievable.

GCC/Asia: In India we see Reliance lining up an ABS of up to INR100bn (about $1bn), with a five-year tenor, a coupon of 8.40%. Meanwhile, the GCC debt capital market is projected to surpass $1.25 trillion. Within this pool, sukuk funding shares have expanded to a record high of over 40%. Total GCC fixed-income primary issuance reached $103 billion in the first half, up 6.5% from the same period last year. Major investment-grade corporate deals, such as UAE real estate giant Aldar and health group Burjeel debuting a $500 million sukuk, continue to highlight strong international investor appetite for asset-linked debt in the region.

Channel's ABF activities continue to be focused on US/UK-EU and GCC funding, with gross returns for 12/18month paper in the 12-13% range, with insurance or securitisation like mitigants.