Post Tagged with: "Fitch Ratings"

Residual Values Will Pressure Losses Through 2019, Analysts Say

Residual Values Will Pressure Losses Through 2019, Analysts Say

September 18, 2017 at 11:10 am 1 comment

MIAMI — Auto ABS losses are on the rise due to the abundance of off-lease vehicles coming back into the market, and that trend is likely to continue into 2020, analysts from Moody’s Investor Service told Auto Finance News. “So far this year we have bumped up our expected lossesRead More

Auto ABS Issuers Pull Pools Back From Harvey, Irma Impacted Areas

Auto ABS Issuers Pull Pools Back From Harvey, Irma Impacted Areas

September 12, 2017 at 12:12 pm 1 comment

During one of the busiest times for the secondary market, auto lenders are excluding vehicles affected by Hurricane Harvey from ABS issuances over fears of negative-equity deals, according to presale reports.   Exeter Finance Corp., Fifth Third Bank Dealer Financial Services, Ford Motor Credit Co., and Santander Consumer USA haveRead More

Competition Revs Up in Floorplan Lending, as Sales Show Signs of Tempering

Competition Revs Up in Floorplan Lending, as Sales Show Signs of Tempering

June 29, 2017 at 10:00 am 0 comments

The partnership between a dealer and a floorplan lender is “very relationship-based, and very emotional,” said Brian Fallon, senior vice president of commercial lending services at General Motors Financial Co. First-, second-, and even third-generation dealers could stay with a floorplan lender for 20 to 30 or more years,” heRead More

Fitch: 2015 Losses on Track for Record High

Fitch: 2015 Losses on Track for Record High

June 20, 2017 at 9:00 am 0 comments

Fitch Ratings found that “2015 is the weakest vintage” of securitized loans, performing even worse than loans made during the 2007 financial crisis, according to the rating agency’s Auto ABS Index report released the month. Extended loan terms and continued used-car depreciation are the main drivers of the poor performance,Read More

Auto Delinquencies Climb, Despite Low Unemployment

Auto Delinquencies Climb, Despite Low Unemployment

May 12, 2017 at 12:47 pm 4 comments

Historically, there has been a “very high correlation” between auto delinquencies and the unemployment rate, yet, today unemployment is the lowest it’s been in a decade while delinquencies have climbed to levels not seen since the financial crisis, Hylton Heard, senior director in Fitch Ratings’ U.S. ABS group, told AutoRead More

Credit Erosion: Cracks Are Starting to Show in Subprime Auto

Credit Erosion: Cracks Are Starting to Show in Subprime Auto

April 21, 2017 at 11:31 am 0 comments

Fitch Ratings reported subprime delinquencies hit a 20-year high in March, and some of the smaller lenders in the space have cut back on originations, stopped issuing securitizations, or shuttered their doors completely, multiple sources told Auto Finance News. The number of new players entering the space has “slowed down,”Read More

Smaller ABS Issuers Likely to Get ‘Picked Off’ in Mergers, Fitch Says

Smaller ABS Issuers Likely to Get ‘Picked Off’ in Mergers, Fitch Says

March 22, 2017 at 9:30 am 0 comments

Given the delinquency and loss rates in the subprime auto securitization market, and the level of competition, it’s “surprising” there haven’t been more mergers and acquisitions lately, said Hylton Heard, analyst and senior director of Fitch Ratings’ U.S. ABS group. “Clearly, if auto sales decline this year, as we expectRead More

Subprime ABS Delinquencies Spike to 20-Year High, Fitch Says

Subprime ABS Delinquencies Spike to 20-Year High, Fitch Says

March 16, 2017 at 12:07 pm 3 comments

Subprime ABS delinquencies at least 60 days past due reached a peak that hasn’t been observed in two decades, according to data from Fitch Ratings.  ABS subprime delinquencies grew 11.6% in February compared to the prior year, to a high of 5.16%, a rate not reached since October 1996 whenRead More

Rising Auto Delinquencies Overtake 2016’s Top Subprime Headlines

Rising Auto Delinquencies Overtake 2016’s Top Subprime Headlines

December 30, 2016 at 10:41 am 0 comments

Subprime lender Santander Consumer USA continued to dominate the headlines in 2016, with new deep subprime securitizations and a feature in AFN’s September issue about how the lender has grappled with a string of compliance issues and lessening investor interest. But Santander wasn’t the only story line to follow inRead More

What a Ride! Four Takeaways from 2016

What a Ride! Four Takeaways from 2016

December 28, 2016 at 10:00 am 0 comments

The year of 2016 was a year of many things. It was a year in which the industry made a bid to marry auto lending and fintech. For example, Chase Auto Finance debuted a digital car-buying service, while Lending Club launched an auto refinance product. It was a year thatRead More

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