‘Key differentiators’ needed amid influx of new subprime auto lenders

auto loans
By Will Caiger-Smith
25 Jun 2014

Only a select few subprime auto ABS issuers warrant triple-A ratings on their securitizations, analysts at Fitch Ratings wrote this week, cautioning investors to establish “key differentiators” between names as new entrants join the market.

A rise in the number of bottom-tier credit buckets in prime auto ABS collateral pools is evidence of more aggressive underwriting in the US auto finance market, wrote John Bella, head of US auto ABS research at Fitch Ratings.

In the subprime market, firms like DriveTime Automotive ...

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