Capital Markets | Auto Finance News - Part 5

Loan Losses Are Worse Than Expected at Two Subprime Auto Lenders

Recent subprime-auto bonds from Prestige Financial Corp. and Exeter Finance Corp. are performing worse than anticipated, at a time when many competitors are at least meeting expectations, according to credit raters. The challenges both face may be remnants of a push for rapid growth a few years back, when these smaller lenders temporarily loosened credit […]

KBRA Downgrades Honor Finance Securitization — Again

Honor Finance’s 2016 asset-backed securitization has been downgraded for a second time by Kroll Bond Rating Agency due to cumulative net losses increasing to 31.2% compared with 29.4% over three collection periods, the rating agency reported April 25. The now-defunct subprime lender’s Class B notes were downgraded to B+ from BB+, and its Class C […]

Fifth Third Returns to Securitization Market With $1.3B Transaction

Fifth Third Bank’s latest $1.37 billion offering marks the bank’s return to the auto ABS market after a two-year hiatus. The 2019-1 transaction will be Fifth Third’s first auto securitization since the prime lender issued a $1 billion offering in September 2017. While the two transactions share similarities, there are distinctions to be made in […]

How Lenders Stand to Benefit From Uber’s Platform

Despite profitability concerns outlined in Uber Technologies’ S-1 filing, lenders could benefit from partnering with the mobility company, Grayson Brulte, president of Brulte & Co., told Auto Finance News. For instance, lenders might allow Uber drivers to rent their off-lease inventory. “Uber is not a ride-sharing company or an autonomous vehicle company or a food […]

‘Diminished’ Tax Season Stymies CPS 1Q Revenue

Tax season, as the auto finance industry has traditionally known it, “probably doesn’t exist anymore,” a factor that contributed to lower revenue at Consumer Portfolio Services last quarter, said CEO Charles Bradley during the company’s first-quarter earnings call last week. The Irvine, Calif.-based lender reported revenue of $88.2 million, down 14.8% from $103.6 million year […]

Weaker Credit Quality Spurs Higher Loss Forecast for Exeter Securitization

Moody's Investor Service bumped up cumulative net loss expectations 1% in Exeter Finance’s most recent securitization to offset the weaker credit quality of the underlying loans. The weighted average credit score for the $572.9 million transaction was 556, “the lowest Fico seen in recent transactions,” said Moody’s Senior Credit Officer Daniela Jayesuria of the securitization slated […]
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