2019 Survival Guide: How Lenders Are Planning for the Year Ahead

From the January issue: 2018 was a strong year for auto finance as delinquency rates dropped, the economy grew, and consumer demand remained high. However, the new year finds lenders and analysts bracing for an economic slowdown. But that’s not the only worry. New-car purchases are lagging, according to Manheim’s November data, which has new-vehicle sales […]

Auto Finance News’ Top 5 Stories of 2018

It was an interesting year. Early in 2018, Fiat Chrysler Automobiles said it would form a captive unit. The end of the year saw the arrest of Renault-Nissan-Mitsubishi alliance head Carlos Ghosn. And there was plenty of news in between. What follows are AFN editors’ picks for top five stories of 2018: Fiat Chrysler Automobiles […]

Honor Finance’s Securitization at Risk for Second Downgrade, S&P Warns

Subprime auto lender Honor Finance’s 2016 ABS issuance is on track for a second downgrade, according to S&P Global Ratings. The rating agency last week placed a tranche of notes under downgrade watch, noting that cumulative net losses (CNLs) rose to 27.2% compared with 13.4% during the past four months following the lender’s first downgraded […]

Honor Finance’s ABS Downgrade Seems to Signal Market Contraction

Subprime auto lender Honor Finance’s 2016 ABS issuance is the first post-crisis downgrade — an indication that the industry’s contraction period is coming sooner than expected, Joe Cioffi, chair of the insolvency, creditors’ rights, and financial products practice group at Davis & Gilbert, told Auto Finance News today. “[The downgrade] is a reminder that ratings are […]

Honor Finance’s $100M ABS Downgraded as Executives Exit

S&P Global Credit Ratings has downgraded deep subprime auto lender Honor Finance’s 2016 ABS issuance because the riskiest bonds issued are “at risk of not being repaid,” according to the report. The latest downgrade highlights some challenges for the company including steep delinquencies and losses, as well as fast executive turnover. The president and co-founder […]

Ballooning Losses at Honor Finance Spark KBRA Downgrade Warning

Kroll Bond Rating Agency is on track to issue its first-ever auto securitization downgrade, as losses mount for subprime lender Honor Finance. KBRA put the 2016 securitization — Honor Finance’s inaugural transaction — on “watch downgrade” last week. Honor Finance’s losses “rose considerably over the past few months,” higher than initial expectation for the $8.86 […]

Honor Finance’s Securitization at Risk for Downgrade, KBRA Warns

Subprime auto finance company Honor Finance received its second warning last week that its 2016 inaugural securitization is at risk for downgrade. Kroll Bond Rating Agency placed the deal’s $8.86 million Class C notes on “watch downgrade” because of higher-than-expected losses and continued management turnover, according to a May 23 surveillance report. Currently, cumulative net […]
  • Nicole Casperson
  • May 29, 2018
  • Risk
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