Asset-backed Securities: Eyes on commercial ABS

Research evidence excerpt

Asset-backed Securities: Eyes on commercial ABS

Amy Sze, CFA AC (1-212) 270-0030 Global Securitized Products J P M O R G A Namy.sze@jpmorgan.com Research

J.P. Morgan Securities LLC

Siddharth Tripathy (1-212) 464-0414 24 July 2026

siddharth.x.tripathy@jpmchase.com

Asset-backed Securities

Eyes on commercial ABS

• At near highest all-in yields of the year, ABS spreads continue to offer attractive relative

value versus comparable credits

• We introduced our Commercial ABS Surveillance tracker to monitor key performance

metrics and triggers across data center, fiber, whole business/franchise and rental car

ABS

• Overall, we recommend senior tranches from established sponsors and asset classes as

opposed to chasing yield on off the run names

Tight spreads, wide yields, still attractive spread pick up in ABS

The ABS market remained active over the past two weeks with good demand, though mixed

spreads. New issues continue to price well with various tranches printing spreads at record

tights. For example, a benchmark auto CLN class G cleared at I +610bp (10.379% yield)

this week, versus the 2025 tightest class G print of +650bp (10.141%) in October. Addition-

ally, the class F (single-B) came at +315bp (7.319% yield), matching the tight spread (at

7.098% yield) back in June 2025 from the same issuer. The higher benchmark rates have

offset narrowing spreads as high all-in yields keep investors engaged and buying. While

yields are very attractive with rates at their highs of the year, ABS spreads are tight, but still

wider, with still some nice pickup, over comparable credits (Figure 1Tightspreads,wideyields). In secondary, paper

continues to trade well through primary levels, though spreads this week were mostly