Tax Refunds Will Boost Auto ABS, Fitch Says

Tax day this year might not be the bear it usually is. At least to some auto finance industry folks. The credit performance of prime and subprime auto asset–backed securities are expected to improve in March and April as tax refunds provide a temporary boost to consumer cash flow, according to Fitch Ratings. The improvements […]

• Cody Lyon
• April 1, 2014
• Capital Markets

GM Financial Said to Be Readying $705M Lease Securitization

GM Financial is premarketing a potential $705 million auto lease asset-backed securitization, according to Thomson Reuters. A GMF spokeswoman would not provide confirmation or comment regarding the report. This would be the first ever auto lease ABS by GMF. Deutsche Bank is expected to lead the deal, along with co-management from JP Morgan Chase. According […]

• Cody Lyon
• March 31, 2014
• Capital Markets

Did Ally’s CEO Deserve Nearly $10 Million in 2013?

Much has been made about the $0 salary of Ally Financial Inc. CEO Michael Carpenter over the last few years. Truth be told, he earned nearly $10 million in deferred compensation last year, just as he has in recent years. Now, with Ally Financial announcing today that it is planning an initial public offering, this […]

• Ben Geier
• March 27, 2014
• Capital Markets, Earnings, Risk Management

Citigroup and Toyota Go Green

The car industry often clashes with the environmental lobby. Citigroup and Toyota, Financial Services though, are looking to change that through financing. The two firms are offering the first ever “green bonds” for the auto industry. Green bonds are securities whose proceeds are used for projects that promote environmentalism. A number of banks, including Citibank, […]

• Ben Geier
• March 26, 2014
• Capital Markets

GemCap Funds $5 Million BHPH Facility

Asset lender GemCap funded a $5 million revolving credit facility for an undisclosed buy-here, pay-here auto dealership. The dealership has experienced steady growth in the past few years and needed a new facility to support its trajectory. “This is an important segment of our economy, and we’re happy to support the continued growth of our […]

• Cody Lyon
• March 13, 2014
• Capital Markets

Fitch Says Asset Quality Will Go Down

Though Fitch Ratings expects the outlook for most individual auto lenders to be “stable,” the agency has assigned a “negative” outlook to the sector. Fitch’s rationale: increased nonprime lending, eased underwriting standards, continued moderation in used-car values, and heightened regulatory scrutiny, according to a report released today. “Still, Fitch does not expect significant deterioration in […]

• Cody Lyon
• February 28, 2014
• Capital Markets

Kroll: Auto Loan Debt Returns to 2007 Levels

U.S. auto loan debt grew $31 billion last quarter, accounting for nearly 25% of the overall consumer debt increase in the period, according to a Kroll Bond Ratings report released today. With the third-quarter gain, auto loan debt returned to levels last recorded in 2007, meaning that the sector continues to see strong growth. Excluding […]

• Auto Finance News
• January 15, 2014
• Archives, Capital Markets

Santander Offers Details of $1.8 Billion IPO

Santander Consumer USA Inc. revealed details of its $1.8 billion, 65.2-million-share initial public offering today in an ammended S1 filing. The IPO would value the company at $8.4 billion. The original SEC document was filed July 3, 2013. Shares would initially be priced between $22 and $24 each. Underwriters will have an additional 30-day option […]

• Cody Lyon
• January 9, 2014
• Archives, Capital Markets