LAS VEGAS — Despite an increased resistance in the secondary market for subprime powersports paper, ThunderRoad Financial continues to maintain “a reasonable percentage” of subprime in its portfolio, Chief Executive Donal Hummer Jr. said at PowerSports Finance 2017 last month.
“I do like subprime,” he told attendees. “… What is difficult is that at the end of day I have to look to be selling or securitizing loans off, and I have to know what my buyers want. Right now, there is resistance in powersports for subprime paper; I have to be mindful of that because I need to be able to sell that.”
That being said, Hummer encourages people to buy subprime paper because “I don’t see losses going up as quickly as the yield and coupon,” he said.
