Year-to-date auto securitization volume hit $57.8 billion at the end of April, with prime loan issuance accounting for the lion’s share of transactions, according to research released today by Deutsche Bank.
Prime loan securitization volume totaled $23.7 billion, and subprime volume reached $12.8 billion. The remaining volume was comprised of retail lease ($9.8 billion), fleet lease ($2.7 billion), rental car ($2.7 billion) and dealer floorplan ($5.1 billion).
That’s the good news.
The bad news is delinquencies have been climbing in the 13 securitizations tracked by Deutsche Bank. For prime securitizers, 60-day delinquencies rose nine basis points in 2016 vintages and six basis points in 2017 and 2018 vintages. For subprime securitizers, 60-day delinquencies rose one basis point in 2016 vintages and 24 basis points in 2017 and 2018 vintages. Based on historical seasonal trends, Deutsche Bank expects auto loan delinquencies to “rise incrementally month-over-month through year-end,” according to the report.
Deutsche Bank tracks securitization performance trends from Ally Financial, American Credit Acceptance, American Honda Finance, CarMax Auto Finance, DriveTime, Exeter Finance Corp., Ford Motor Credit, GM Financial, Hyundai Capital America, Nissan Motor Acceptance Corp., Santander Consumer USA, Toyota Financial Services and World Omni Financial Corp.