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
  • 0

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
  • 0

NMAC Sets Goal of 100% Auto-Decisioning, President Says

Nissan Motor Acceptance Corp. will invest “significant resources” in technology over the next few years — starting in 2018 — to allow the captive to be open 24/7, President Kevin Cullum told Auto Finance News. “Customer demand for online shopping and financing is really driving our businesses, and it’s vital that we invest in new […]
  • Natalie Mattila
  • December 18, 2017
  • 0

Moody’s Highlights Residual Value Concerns of Battery EVs

Residual values for battery-electric-vehicles (BEVs) remain an issue for the auto industry, particularly for auto lease-backed securities, according to a report from Moody’s Investors Service. Compared to internal-combustion-engine (ICE) vehicles, BEV cars suffer from higher residual uncertainty because of three primary reasons. The first is the lower predictability of BEVs’ value proposition compared to ICE vehicles. […]
  • Emma Sandler
  • December 15, 2017
  • 2

NMAC’s Third ABS Shows Higher Fico, Longer Terms

Nissan Motor Acceptance Corp. closed its third ABS of 2017 yesterday, to the tune of $1.5 billion, and featured a higher Fico and longer loan terms than previous 2017 securitizations. The 2017-C securitization is backed by prime-quality retail installment auto loan contracts including a mix of prime receivables, backed by cars, crossover vehicles, sports utility […]
  • Emma Sandler
  • December 14, 2017
  • 0

GM Financial Increases Credit Quality in Latest Securitization

Credit quality in General Motors Financial Co. securitization pools has been steadily climbing, according to a presale report by Moody’s Investors Service. GM’s latest ABS issuance — GM Financial Consumer Automobile Receivables Trust 2017-3  — is a $1 billion transaction backed prime retail installment auto loans, according to the report. “The credit quality of the collateral […]
  • Huixin Deng
  • September 28, 2017
  • 0

USAA Continues to Drop APR, Latest ABS Shows

USAA Federal Saving Bank released its first prime retail issuance of 2017 last week with weighted average APR of 4.0% — the lowest of any recent USAA transaction, according to a presale report by Moody’s Investors Service. The USAA Auto Owner Trust 2017-1 is a $486 million transaction backed by prime retail installment auto loan […]
  • Huixin Deng
  • September 13, 2017
  • 0

Gateway One Reins In Securitization Program for ‘Predictable’ Profits, President Says

Gateway One Lending & Finance has scaled back its securitization program, as it looks to bolster loan quality and secure more predictable profits, President Todd Pierson told Auto Finance News. “[The secondary] market has changed considerably,” Pierson said. “It’s been somewhat unpredictable for Gateway and [parent company] TCF Bank from an earnings standpoint, and we’ve […]
  • William Hoffman
  • July 10, 2017
  • 0

Expected Loss for HDFS $302MM ABS Low Despite High Credit Losses

The cumulative net loss expectation for Harley-Davidson Financial Services’ latest asset-backed securitization is low — 1.5% — regardless of a spike in HDFS credit losses, because the pool is “substantially stronger” than any previous transaction, according to analysts.
  • Natalie Mattila
  • June 23, 2016
  • 0

Rising Subprime ABS Losses ‘Vary’ by Lender, Moody’s Says

Net loss rates are increasing in the subprime-backed ABS sector, according to report from Moody’s Investor Services released yesterday. However, “much of the overall performance deterioration is a result of an increased number of ABS transactions from smaller lenders that cater to “deep” subprime borrowers who have particularly weak credit.” Low losses on loan originations […]
  • Larissa Padden
  • April 7, 2016
  • 1
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