KBRA Releases Research Report on the Rise in Auto Loan ABS Loss Rates
August 21 2017 - 11:39AM
Business Wire
Kroll Bond Rating Agency (KBRA) has released a new Structured
Finance research report titled “U.S. Auto Market Update:
Deconstructing Headline Loss Rates.” The report makes the following
key points:
- Much of the deterioration in Auto Loan
ABS fundamentals can be attributed to mix shift; however, as the
used car market has softened, we have seen incremental
deterioration on an issuer-by-issuer basis.
- We think used car prices remain
vulnerable to a confluence of factors, including excess OEM
production and dealer inventory, elevated new-car price incentives,
and growing off-lease vehicle supply. Our expectation is for
continued softening in the used-car market through 2017 and 2018,
which will likely continue to place pressure on auto loan loss
rates as severities remain elevated.
- Despite rising losses, risks remain
well contained and investors are well protected, in our view, given
that these securitizations continue to benefit from robust credit
protection.
Related Publications:
(available at www.kbra.com)
- Food for Thought - Opportunities in
Whole Business Securitization
- Shifting Gears - Analysis of Auto
Loan & ABS Trends
CONNECT WITH KBRATwitterLinkedInDownload
the iOS AppYouTube
About Kroll Bond Rating
Agency
KBRA is registered with the U.S. Securities and Exchange
Commission as a Nationally Recognized Statistical Rating
Organization (NRSRO). In addition, KBRA is recognized by the
National Association of Insurance Commissioners (NAIC) as a Credit
Rating Provider (CRP).
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170821005616/en/
Kroll Bond Rating AgencyAnalytical
Contacts:Brian Ford, CFA, Head of Structured Finance
Research646-731-2329bford@kbra.com