Capital Markets | Auto Finance News

Extended-Term Contracts Lower Credit Quality in Bank of the West Securitization

Extended-term contracts, an increased loan-to-value ratio, and a rise in the number of loans with lower Fico scores are responsible for weakened credit quality in Bank of the West’s $764 million auto trust securitization — the bank’s first of the year — according to a Fitch Ratings’ presale report. The average term of loans securitized […]

Decline in Used-Vehicle Inventory Dampens Dealer Sentiment

Used-car sales – a driver behind recent market strength – may slow as used-vehicle inventories shrink, according to Cox Automotive’s second-quarter Dealer Sentiment Index report published last week. “If market strength is being driven by used vehicles, can used-vehicle sales remain strong considering declining inventory?” Cox Auto Chief Economist Jonathan Smoke said in a statement. […]

Carvana Hits ABS Market With Second Transaction

Carvana is bringing $337.3 million in asset-backed securities to market in a deal that’s expected to close June 27, according to a presale report by Moody’s Investors Service issued this week. Carvana’s second deal of the year props up its ABS volume to $676.1 million just three months after the online used-vehicle retailer completed its […]

Longer Terms, Revolving Period Are Risk Factor in Toyota’s Latest $1B ABS Deal

Toyota Motor Credit Corp. is bringing $1.13 billion in asset-backed securities to market in the captive’s first extended-loan securitization, which is expected to close on June 19, according to a pre-sale report by Moody’s Investors Service. TMCC’s newest deal is comprised of 54,385 prime auto loan receivables with an average FICO score of 754 and […]

Lengthening Loan Terms a Concern for ‘Healthy’ Subprime ABS Market

PLANO, Texas — The growing popularity of loan terms over 60 months is a concern for the subprime auto securitization market, Amy Martin, senior director of structured finance at S&P Global Ratings, said at the Nonprime Auto Finance Conference last week. “We’re concerned about the lengthening of loan terms because that could lead to a […]

Failure of FCA-Renault Merger a Good Sign for SCUSA, Analyst Says

As Fiat Chrysler Automobiles closes the door on the potential Groupe Renault merger, withdrawing its merger proposal to the French OEM Wednesday evening, another door may open for Chrysler Capital owner Santander Consumer USA. While SCUSA is “no longer talking to Chrysler about buying Chrysler Capital” — a discussion that started in May 2018 — […]

Auto ABS Volume Closes In on $60B

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 […]
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