Kroll Bond Rating Agency | Auto Finance News | Auto Finance News

Auto issuance drives ABS growth

The auto finance sector is propping up the securitization market, with year-over-year growth climbing 18% through June, according to Kroll Bond Rating Agency’s Midyear 2019 ABS Outlook published last week. Auto securitization volume hit $68.5 billion through June, according to KBRA. “Despite plateauing new-vehicle sales, there has been tremendous year over year growth in auto-related […]

KBRA Withdraws Ratings as Honor Finance Securitization Winds Down

Honor Finance’s 2016 securitization has been withdrawn from Kroll Bond Rating Agency’s surveillance after being paid in full, the rating agency announced this week. The transaction had suffered two downgrades since July 2018, a month before the defunct company transferred its servicing to Westlake Portfolio Management. On June 17, servicer Westlake Portfolio Management exercised its […]

Despite Stronger May, ABS Credit Performance Likely to ‘Deteriorate,’ Rating Agency Says

After 16 straight quarters of improvement, credit quality in prime auto loan securitizations will start to “deteriorate,” according to a newly released report from Kroll Bond Rating Agency. While May servicer reports showed improving credit performance across prime and nonprime auto securitizations, performance is predicted to weaken through the summer months. “With the effects of the […]

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 […]

Dealership Financing Slips as Customers Prefer Online Options, Survey Shows

Consumers are increasingly opting to skip the dealership when it comes to getting their next auto loan, according to fresh data from Fico. Published last week, Fico’s 2019 U.S. Consumer Survey of Vehicle Finance Perceptions examined how consumers looked at the financing of their vehicle purchases and how auto finance companies are currently meeting their […]

Sierra Auto Finance Unloads Servicing Portfolio

Sierra Auto Finance transferred servicing of its portfolios to First Investors Financial Services on March 2, seven months after the subprime lender put a pause on new originations due to “unfavorable market conditions.” Sierra, founded in 2012, had $144 million of outstanding receivables at yearend 2018, down from $185 million in July 2018, according to […]

Will Ride-Hailing Replace Personally-Owned Cars? Execs Weigh In

LAS VEGAS —  The disruptive impact that ride-hailing companies are having on auto finance is evident with the success of Uber and Lyft. While both companies are not profitable, Uber 's revenue surged 43% to $11.3 billion in 2018 and Lyft's revenue doubled to $2.2 billion. However, the question confronting auto finance is whether ride-hailing […]
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