KBRA releases a report that examines how some credit unions are turning to the ABS market. Credit unions have traditionally sourced funding through member deposits, wholesale borrowings and, to a lesser extent, through loan-participation sales and alternative sources such as repurchase agreements and committed lines of credit. However, with pressure on credit unions’ balance sheets and liquidity concerns due to higher interest rates, some of these not-for-profit financial institutions are turning to the ABS market for sources of liquidity, using securitization to bolster their liquidity profile while diversifying funding options. Credit unions have issued 12 auto loan ABS transactions totaling $3.6 billion since 2019, with the majority pricing in 2023 ($2 billion in seven transactions).