Total auto asset-backed securitization volume remained lower year to date through April 10.
Auto asset-backed securitization (ABS) volume sat at $47.4 billion YTD as of April 10, down 3.8% year over year, according to the latest data from JPMorgan Securities.
The K-shaped economy and issues related to the subprime auto market are slowing down issuance volume, Daniel Schaeffer, executive director of ABS Capital Markets at Academy Securities, told Auto Finance News.
The Iran war is also affecting volume.
Additionally, “geopolitical events are pushing out the issuance volume,” he said. However, “we should see a ramp up in volume if we see the conflict or volatility due to conflict subside.”
By asset type, according to JPMorgan Securities, issuance volume was:
- $20.4 billion for prime loans, down 8.6% YoY;
- $12.9 billion for nonprime loans, down 7.9% YoY;
- $10.3 billion for lease volume, up 13% YoY; and
- $3.8 billion for fleet and others, down 1.5% YoY.
While auto lease ABS volume marked the only positive YoY change, it was unchanged from March 27.
Recent issuers
Four issuers came to market from April 1 through April 10 with auto ABS deals, according to CreditFlow, which monitors securities:
- BMW Financial Services issued a lease ABS deal worth $1.2 billion on April 9;
- GM Financial’s $1.3 billion prime loan ABS deal came to market on April 9; and
- Toyota Financial Services came to market on April 8 with a prime ABS deal worth $1.3 billion; and
- Global Lending Services issued a subprime ABS deal worth $227 million on April 6.
There is, however, a chance that issuance volume can rebound this year if the economy gets a boost, Schaeffer said.
“If the stimulus is able to push the economy through in 2026, we should see very high issuance volume again in 2026,” he said.
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