Sales of Sub-Prime Auto Paper to Securitization Markets Good Sign for Dealers

Situation: Issuance of more auto credit to sub-prime or credit challenged consumer buyers is a positive sign that independents and franchise dealers are going to find funding for car longs in the third and fourth quarters of 2012
Key Numbers:  Volume of sub-prime auto bond issuance is  projected to be $20 billion in 2012
Who are the Players? Blackstone,  Exeter and other private equity firms, Credit Suisse Auto Finance; losses have peaked at 14 percent of the collateral pool.
What seems to be going on?   More lenders are entering the field, which will cause losses to increase.  This is compared with 50 percent for home mortgages.
What does this mean?  To dealers? To OEMs? To others? —You can sell more new and used vehicles and the financing and underwriting will be there to back  you up.
Where can you drill down even more to see what you should? Watch Bloomberg TV,  stay on the NAF site, and read the business pubs including www.wsj.com and definitely the fixed structure market in the second section of the Financial Times.

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