GM Financial subprime unit AmeriCredit Corp. is bringing a $1-billion package of asset-backed securities to market in deal that’s set to close on Nov. 20.
It will be the subprime lender’s fourth securitization deal this year.
Standard & Poor’s ratings agency wrote in its presale report that AmeriCredit’s servicing portfolio has continued to expand in 2012, 2013 and 2014. As the quarter ended Sept. 30, 2014, AmeriCredit’s consumer finance receivable portfolio in North America was about $12.7 billion, up from $11.5 billion the same time last year.
Net chargeoffs for North America as a percentage of the average month-end balance outstanding increased to 2.9% for the nine months ended Sept. 30, from 2.5% for the same period in 2013. Total delinquencies and repossessions increased to 9.6% of the outstanding loan balance as of Sept 30, compared to 8.6% the same time last year, according to Standard & Poor’s.
Around 96% of this latest pool of loans are newly originated, and 4% are highly seasoned, originated primarily in early 2010 and sourced from recently called securitizations. The weighted average LTV is 111%.
