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Auto ABS issuers lock in capital ahead of possible macro volatility

SAAR likely at 16.8 million units in August as prime buyers insulated market

Auto lenders are turning to the asset-backed securitization market to lock in capital ahead of potential late-year interest rate volatility that could drive up funding costs.  Persistent inflation could lead the Federal Reserve to hike rates — a reversal of monetary policy expectations from early 2026, economists told Auto Finance News. Geopolitical tension in the Middle East adds another layer of uncertainty, with potential energy price increases threatening to keep inflation elevated.  […]

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