Tesla Issues Second-Ever Lease Securitization Despite Previous Downgrade

Tesla Inc. is slated to issue its second-ever U.S. auto securitization on Dec. 19, according to presale reports. The $837 million transaction is 53% larger than Tesla’s inaugural securitization, which was issued in February. That securitization was subsequently downgraded because of a “significant shortfall” in the Model 3 production rate and a weak financial situation, […]

• Nicole Casperson
• December 13, 2018
• Capital Markets, Strategy

Ford Motor Credit Issues Second $1B Auto ABS Transaction

Ford Motor Credit issued its second auto loan ABS transaction of the year with a $1.05 billion pool, according to Moody’s Investors Service. With the transaction, the captive finance arm’s total 2018 securitized portfolio is $1.1 billion while its auto loan portfolio totals $46.2 billion. Ford Credit’s latest transaction represents the most substantial average loan […]

• Nicole Casperson
• October 15, 2018
• Credit Performance, Risk

Residual Values Are Risk Factor in BMW Financial’s First Auto Lease ABS of 2018

BMW Financial Services of North America issued its first U.S. auto lease ABS of 2018 backed by a pool of outstanding lease receivables totaling $1.16 billion, according to presale reports. The new securitization is comprised of 33,670 prime auto lease receivables with an average FICO score of 789 and maximum lease term of 36 months, according […]

• Nicole Casperson
• October 8, 2018
• Capital Markets, Risk, Strategy

Credit Acceptance Extends Revolving Period of Warehouse Facility

Credit Acceptance Corp. (CAC) announced on Thursday that it extended the revolving period and the maturity date of its warehouse facility, according to a company press release. CAC’s $100 million revolving secured warehouse facility revolving period was extended to August 2021. The last time the warehouse revolving period was extended was in August 2017 to […]

• Nicole Casperson
• August 16, 2018
• Capital Markets, Credit Performance

Negative Equity Risk Rises in Canada as Terms Lengthen, Refinancing Quickens

Long loan terms and more frequent refinancing have led to an increase in Canadian auto loans with negative equity, according to a Moody’s Investors Service report. Negative equity happens when a consumer owes more on a vehicle than it is worth. This situation can be exacerbated when customers buy new vehicles before completing their original […]

• Matthew Wood
• May 1, 2018
• Capital Markets, Credit Performance

Senate Bill Gives Banks ‘Wiggle Room’ for Nonprime Lending, Economist Says

A bipartisan financial reform bill making its way through the Senate this week could allow midsize banks in the auto space to be more competitive with non-bank institutions, especially in the nonprime sector, said Michael Vogan, lead auto economist at Moody’s Analytics. Senate bill 2155, sponsored by Senate Banking Committee Chairman Mike Crapo (R-ID), would […]

• William Hoffman
• March 12, 2018
• All Posts, Compliance, Credit Performance, Operations

Consumer Preferences May Pose ‘Prominent Threat’ to Residuals, Moody’s Says

Changing consumer preferences and new electric vehicle technology bear “prominent threats” for auto finance, in particular, due to residual values, Moody’s Investors Service said in a report Monday. In North America, customers have an increased preference for SUVs, partly attributable to low gas prices and good economic conditions. The sales mix of new SUVs and trucks […]

• Emma Sandler
• February 15, 2018
• All Posts, Risk, Strategy, Technology

Tesla Files to Issue Inaugural Auto Lease Securitization

There might be a new entrant in the auto asset-backed securitization market. Tesla Inc. issued an ABS-15G filing with the Securities and Exchange Commission last week, indicating the electric car maker will establish a Tesla Auto Lease Trust. The manufacturer is poised to issue a bond backed by leases on its electric cars in an […]

• Natalie Mattila
• January 29, 2018
• All Posts, Capital Markets, Operations, Strategy