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Volatile residuals could prompt additional pullback of EVs in auto ABS deals

TFS, Stellantis Financial Services among those limiting EV allocation in ABS

Truth Headlam

As electric vehicle residual values grow increasingly volatile, some lenders could scale back from including EVs in their auto asset-backed securitization deals in the coming year.   The percentage of battery-EV (BEV) leases in securitizations is expected to gradually decrease in issuer pools in 2026 and 2027, Amy Martin, managing director and sector lead for United States ABS at S&P Global, told Auto Finance […]

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