Correction time for subprime autos as AmeriCredit squeezes through
US auto lender AmeriCredit paid up for its latest subprime loan securitization this week, after a period of widening in the sector sparked by increased regulatory scrutiny. While the deal did get away successfully, market participants were left wondering why it was brought to market in such poor conditions.
Trading volumes of auto ABS were normalising this week, after some $1.17bn of paper changed hands the week before last, according to data from Empirasign. But having seen a block of its legacy paper trade at a discount last week, AmeriCredit was forced to pay up to 45bp