Sound the Credit Quality Alarm

It’s time to sound the alarm. Weakness has taken hold of the credit quality within securitized subprime auto assets. Deutsche Bank reported today that year-over-year delinquencies and net loss rates for subprime are up noticeably. Specifically, on a year-over-year basis subprime 60-plus day delinquencies climbing 65 basis points, and the annualized net loss rate rising 114 […]
  • JJ Hornblass
  • June 15, 2017
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In Decline in Auto ABS Volume, Evidence of a Shifting Landscape

The volume of automotive asset-backed securitization — a key source of auto finance liquidity — through May this year is off 12% compared with the same period in 2015, according to Deutsche Bank. That’s not to say auto ABS has turned in consistent volumes in recent years. Last year, total auto ABS fell 1% to […]
  • JJ Hornblass
  • July 27, 2016
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3 Steps for a Successful ABS Offering

Issuing a securitization can “help out with the bottom line” and generate increased interest from investors, according to Donal Hummer Jr., ThunderRoad Financial’s president and chief executive. However, the securitization process is “very engaging,” time-consuming, and requires many moving pieces, he said during a First Associates Loan Servicing webinar entitled Securitization: A Case Study. The powersports lender’s […]
  • Natalie Mattila
  • June 22, 2016
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Who’s Who (and What They Want) on the Capital Markets

For any auto finance company, capital is the lifeblood. And the capital markets are the ultimate source of funding for most auto finance ventures. When working with — or wanting to work with — the capital markets, it is important to understand what each “customer” in the capital markets wants and needs. Below is a handy […]
  • JJ Hornblass
  • October 20, 2014
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S&P Revamps Lease ABS Guidelines

Taking a cue from the mortgage securitization playbook, Standard & Poor’s has revised its methodology for rating auto lease ABS transactions by introducing a “benchmark pool” against which all securitized pools will be compared. The rating policy change, announced late last year, is part of a broader initiative to create a more transparent and replicable […]
  • Marcie Belles
  • May 28, 2013
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