Higher Credit Quality Offsets Reduced Seasoning in CPS Securitization

Despite less loan seasoning in Consumer Portfolio Services’ first securitization of the year, the transaction’s expected loss rate is unchanged from the lender’s previous ABS deal, according to an S&P Global Ratings presale report. An emphasis on higher-tiered borrowers positively impacted the transaction, according to S&P. Specifically, the percentage of borrowers in CPS’s top three […]

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 […]

Ford Motor Credit to Issue $500M Dealer Floorplan ABS

Ford Motor Credit is expected to close its fourth auto securitization on December 21, according to presale reports. The transaction, backed by a $500 million pool of revolving floorplan accounts, is 31.7% smaller than the captive’s last securitization — $732.2 million of notes — which was issued in November. However, the transaction has a 10-year revolving […]

U.S.-China Tariffs, Credit Availability Threaten New-Car Market

Trade disputes and a tightening credit cycle pose risks for U.S. financial institutions, S&P Global Ratings noted in a report released earlier this month. “The hallmark of the auto finance industry is its access to credit and keeping the needle moving,” Jeremy Acevedo, manager of industry analysis at Edmunds, told Auto Finance News. “If [credit […]

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 […]

Avid Acceptance to Double Securitization Volume on Heels of JPMorgan Chase Funding Facility

Avid Acceptance LLC’s new warehouse facility will put the lender on track to double its securitization volume next year, Chief Financial Officer Curtis Ash told Auto Finance News. The $50 million funding facility from JPMorgan Chase “will allow [Avid] a larger securitization in 2019,” Ash said, likely in the third or fourth quarter. The warehouse […]

Subprime Issuers Gain Share of ABS Market

NEW YORK — Though subprime originations have declined, “a greater share of these originations are making their way into the securitization market,” Amy Martin, senior director of structured finance ratings at S&P Global Ratings, said during the agency’s Auto Industry Hot Topics event last month. With banks reducing their loan volume, independent finance companies have […]
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