Weaker underwriting for prime autos

By Ryan Bolger
13 Oct 2014

Prime auto lenders have been financing their loans more cheaply in the ABS markets in recent months, despite weaker collateral performance and longer maturities.

Underwriting standards for prime auto loans have declined in recent years, with the credit quality of underlying auto ABS loan pools weakening modestly since 2012 and returning to pre-recession levels, according to a Fitch Ratings report released Monday.

Average lengths to maturity for the loans have surpassed ...

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