74) Over the Past Three Months, How Have the Terms Under Which Consumer ABS (for Example, Backed by Credit Card Receivables or Auto Loans) Are Funded Changed?| A. Terms for Average Clients | 4. Collateral Spreads Over Relevant Benchmark (Effective Financing Rates). | Answer Type: Tightened Somewhat

SFQ74A4TSNR • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

2.00

Year-over-Year Change

0.00%

Date Range

10/1/2011 - 4/1/2025

Summary

This economic indicator tracks changes in funding terms for consumer asset-backed securities (ABS), specifically focusing on collateral spreads over benchmark rates. The metric provides insights into credit market conditions and lending standards for consumer finance products like credit cards and auto loans.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The trend measures how financial institutions are adjusting the pricing and risk assessment of consumer asset-backed securities. Economists interpret these changes as a signal of credit market tightness, lending risk perception, and potential shifts in overall economic conditions.

Methodology

Data is collected through surveys and financial market observations, tracking the spread between ABS funding rates and relevant benchmark interest rates.

Historical Context

Policymakers and financial analysts use this indicator to assess credit market health, potential lending constraints, and broader economic liquidity conditions.

Key Facts

  • Tracks funding terms for consumer asset-backed securities
  • Indicates potential changes in lending standards
  • Provides insights into credit market risk perception

FAQs

Q: What are asset-backed securities (ABS)?

A: Asset-backed securities are financial instruments created by pooling specific types of loans, such as credit card receivables or auto loans, and selling them to investors as tradable securities.

Q: Why do collateral spreads matter?

A: Collateral spreads reflect the perceived risk in lending markets, with wider spreads indicating higher perceived risk and potentially tighter lending conditions.

Q: How often is this data updated?

A: The Federal Reserve typically updates this indicator quarterly, providing a periodic snapshot of consumer ABS market conditions.

Q: What can changes in ABS funding terms indicate?

A: Changes can signal shifts in economic conditions, credit market sentiment, and potential constraints or expansions in consumer lending.

Q: How do policymakers use this information?

A: Central banks and regulators use this data to assess credit market health and potentially adjust monetary policy or financial regulations.

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Citation

U.S. Federal Reserve, 74) Over the Past Three Months, How Have the Terms Under Which Consumer ABS (for Example, Backed by Credit Card Receivables or Auto Loans) Are Funded Changed?| A. Terms for Average Clients | 4. Collateral Spreads Over Relevant Benchmark (Effective Financing Rates). | Answer Type: Tightened Somewhat [SFQ74A4TSNR], retrieved from FRED.

Last Checked: 8/1/2025