Despite the overall popularity of subprime, the sector has faced significant losses and increased fragmentation this year.
While Credit Acceptance and Westlake Financial Services continue to express interest in subprime lending, Fitch Ratings found subprime ABS delinquencies have spiked to a 20-year high.
Additionally, a stress test from S&P Global indicated a rise in both prime and subprime is expected in the coming years. While the research isn’t fully published yet, preliminary results were shared during an auto-finance-focused webcast, which showed that even the most generous stress scenario only slightly lowers the trend of increasing loss rates, said Thomas Schopflocher, senior director of structured finance research at the ratings agency.
Read more of the year’s top subprime stories below, including Uber’s shutdown of its subprime leasing unit Xchange Leasing.
- Subprime ABS Delinquencies Spike to 20-Year High, Fitch Says
- Auto Finance Needs a ‘Subprime Correction,’ CPS Says
- Subprime Loan Volume Reaches Record Low, Experian Finds
- Subprime Securitization Markets Sees Increased Fragmentation
- Buyers Unlikely to Bite on Uber Subprime Leasing Unit
- S&P Stress Tests Show Rising Subprime Auto Losses
- Deep Subprime Auto Securities Grow to 32% of the Market
- Westlake Said to be Prepping Subprime Used Leasing
- LTVs Decline in 1Q as Subprime Lenders Aim to Steady Loss Levels
- Credit Acceptance Expands Subprime Lending While Losses Spike