Loose auto underwriting points to ‘weak’ credit outlook, Moody’s says

Lenders did little to tighten auto loan underwriting last quarter despite worsening delinquency trends. Last quarter, 3.5% of bank respondents in the Federal Reserve's Senior Loan Officer Opinion Survey reported to have somewhat tightened credit standards. The remaining 96.5% said standards remained basically unchanged. Given the "rapid rise in auto loan debt," however, banks would […]

• Bianca Chan
• August 7, 2019
• Credit Performance, Risk Management

China’s auto ABS market tops $4.5B on heels of Geely deal

China’s asset-backed securities market is a growing funding source for auto lenders, as issuance has topped $4.5 billion (RMB31.2 billion) this year, according to data from S&P Global Ratings’ China Securitization Performance Watch report.  “We expect improving debt serviceability, enhanced underwriting and risk control, and securitization’s structural protection to continue to support the robust performance […]

• Nicole Casperson
• July 18, 2019
• Capital Markets

Longer-term loans weigh down USAA securitization

Nearly two-thirds of the loans in USAA’s first asset-backed securitization of the year have terms longer than 60 months — a first for the company, according to a Moody’s Investors Service pre-sale report published Tuesday. In the $503 million transaction, 64% of loans have an original term greater than 60 months, which is the highest proportion of […]

• Bianca Chan
• July 18, 2019
• Capital Markets, Risk Management

Japanese auto lender heats up ABS market with $468m issuance

Japanese auto financier Orient Corp. (Orico) is bringing $467.6 million of asset-backed securities to market in a deal that’s expected to close July 30. The notes were rated by Moody’s Investors Service and Fitch Ratings.  The deal is Orico’s second this year, propping up the lender’s U.S. ABS volume to nearly $1 billion. The latest […]

• Nicole Casperson
• July 8, 2019
• Capital Markets

Longer Terms, Revolving Period Are Risk Factor in Toyota’s Latest $1B ABS Deal

Toyota Motor Credit Corp. is bringing $1.13 billion in asset-backed securities to market in the captive’s first extended-loan securitization, which is expected to close on June 19, according to a pre-sale report by Moody’s Investors Service. TMCC’s newest deal is comprised of 54,385 prime auto loan receivables with an average FICO score of 754 and […]

• Nicole Casperson
• June 10, 2019
• Capital Markets

Fifth Third Returns to Securitization Market With $1.3B Transaction

Fifth Third Bank’s latest $1.37 billion offering marks the bank’s return to the auto ABS market after a two-year hiatus. The 2019-1 transaction will be Fifth Third’s first auto securitization since the prime lender issued a $1 billion offering in September 2017. While the two transactions share similarities, there are distinctions to be made in […]

• Bianca Chan
• April 29, 2019
• Capital Markets

Weaker Credit Quality Spurs Higher Loss Forecast for Exeter Securitization

Moody's Investor Service bumped up cumulative net loss expectations 1% in Exeter Finance’s most recent securitization to offset the weaker credit quality of the underlying loans. The weighted average credit score for the $572.9 million transaction was 556, “the lowest Fico seen in recent transactions,” said Moody’s Senior Credit Officer Daniela Jayesuria of the securitization slated […]

• Bianca Chan
• April 22, 2019
• Capital Markets, Update

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