Auto supply floods ABS market to quench investor demand

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By Jennifer Kang
26 Apr 2021

The auto ABS pipeline remains robust with Consumer Portfolio Services pricing a subprime auto securitization, immediately following back to back pricing of three other auto issuers mid last week. Despite the heavy supply, investors are eager to digest more auto paper, both prime and subprime, market participants said.

The auto ABS market is one of the strongest performing consumer asset classes at the moment, with demand and pricing exceeding expectations. Over the past few weeks, deal oversubscription levels went from eight times, to two times and now back to four times.

“The expectations were ...

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