Subprime Auto ABS Loan Losses Peak in August

Recent Fitch Ratings data has shown that losses on subprime ABS loans rose 27 percent in August, 2016 compared to last year, according to a Financial Times article. Fitch Ratings said the increase was driven in part by weaker used car sales. Smaller borrowers in the market rely heavily on securitization, sparking concerns around potential defaults, according to Financial Times.

According to Fitch, “Despite the current strength of the wholesale vehicle market, used vehicle values will come under pressure from slowing consumer demand and rising supply in the latter part of the year and early 2017. This trend will slow auto ABS asset performance over the next 12 months.”

Read More
Share this:   Facebook   Twitter   LinkedIn   AddThis
Terms and Conditions | Privacy Policy