Fitch Ratings Agency | Auto Finance News | Auto Finance News

Fintech Startups Pose Risk to Lenders, Analyst Warns 

As lenders increasingly look to fintech companies to facilitate loan origination, one analyst warned these partnerships can be a double-edged sword. “If [lenders] are leveraging some fintech platform that claims to have built the better mousetrap in terms of their underwriting platform but haven’t been around through credit cycles and haven’t proven that out, to […]

GM Financial Issues $1.25B Securitization to Jumpstart 2019

GM Financial has kicked off 2019 auto asset-backed securitization activity with a $1.25 billion deal issued last week, according to presale reports. Although analysts anticipate macroeconomic headwinds, such as interest rate stresses, to hit the industry this year, Fitch Ratings Agency said in its presale report that losses in GM Financial’s 2016 and 2017 managed […]

Fitch Forecasts Subprime Auto ABS to Weaken in 2019

While prime auto lease and loan asset-backed securitizations are projected to remain stable, Fitch Ratings Agency expects the outlook for subprime auto ABS to weaken. In a 2019 consumer lending outlook, Fitch’s Senior Director of ABS Ian Rasmussen said subprime auto asset-backed securities are more vulnerable due to weaker borrower profiles and industry headwinds inflated […]

Honda Finance’s Late-Stage Delinquencies Rise

American Honda Finance Corp.’s late-stage delinquencies rose 28% year over year to 1.21% of outstandings through June 2018, including a spike in delinquencies more than 120 days past due, according to the company’s latest securitization pre-sale report prepared by Fitch Ratings Agency. Delinquencies more than 120 days past due grew to $108,000 up from just $40,000 […]

Auto ABS Recoveries to Deteriorate if Incentive Spend Continues

  Auto loan and lease ABS will experience worsening recoveries and heightened performance pressures should vehicle values continue to fall and supply continue to swell, according to a Fitch Ratings report analyzing stress-test data.  Losses have been gradually trending higher since 2016 and the possibility of higher defaults “becomes more tangible if increased competition, a […]
  • Nicole Casperson
  • May 31, 2018
  • Strategy

Auto ABS Delinquencies Rise to 22-Year High

Subprime delinquencies 60 days or more past due on the secondary market rose to 5.76% in February, the highest they’ve been since 1996, according to Fitch Ratings Auto ABS Index.   March delinquency figures have already come down slightly to 5.16% — 34 basis points higher than the same period the year prior, Hylton Heard, […]

Rising Delinquencies Dominate 2017’s Top Subprime Headlines

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 […]
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