What’s behind rising delinquencies on private-label credit cards
It’s not just weaker underwriting and higher household debt levels that are driving past-due rates to their highest levels in seven years.
By
Andy Peters
Subprime lending
Lenders retreat from subprime consumer credit as losses mount
The post-recession boom in auto loans and credit cards for borrowers with marred credit histories has been winding down in recent months.
Santander gets a (slightly) easier AAA on its next deep subprime auto ABS
The Dallas-based lender, a unit of the global banking giant Banco Santander, was able to lower credit enhancement on the senior notes to 63.55% from 65.25% on the previous deal in February.
By
Glen Fest
AmeriCredit, Flagship pump $1.22B into subprime auto pipeline
AmeriCredit returns to securitization for the first time since November with a $1.1 billion deal, while Flagship's $223 million deal, its second of 2018, takes a step back in collateral quality.
By
Glen Fest
CAC pays up for AAA on next deep subprime auto ABS
The senior tranche of Credit Acceptance Auto Loan Trust 2018-2 benefits from initial credit enhancement of 51.61%, up from 49.93% in a February deal; it comes from additional subordination.
By
Glen Fest
Auto lending scrutiny: Will states pick up where CFPB left off?
Auto lenders would be well advised to keep up their guard as states — particularly blue ones — take steps of their own to crack down on what they see as abusive practices.
Lendmark’s $250M nonprime consumer loan ABS draws split ratings
While DBRS maintained a rating of AA for the Lendmark Financial's first ABS of 2018, S&P issued an A rating after estimating higher net losses on the underlying subprime accounts.
By
Glen Fest
Subprime auto lessor making 1st trip to securitization market
RAC King (d/b/a American Car Center) has expanded rapidly since being acquired in a 2016 leveraged buyout; now it's bundling most of its portfolio into collateral for bonds.
Tidewater readies 1st subprime auto ABS in 2 years
The $185 million transaction features a higher exposure to borrowers entering bankruptcy than the sponsor's 2016 deal; it's also more seasoned, since it recycles 2014 collateral.
Exeter maintains AAA on subprime auto ABS despite dip in collateral quality
Higher LTVs and fewer low-risk, new-car loans trumped the recent decline in managed-portfolio delinquencies and improved ABS performance since 2015.
By
Glen Fest
Calif. fines Santander Consumer for referral-fee violations
The subprime auto lender failed to disclose that it received fees for referring borrowers to CarMax, the used-car dealer, according to California's financial regulator.
GM Financial, Santander continue ABS credit-quality improvement
But GMF's deeper dive into long-term loans for a pool increasingly dominated by pricier trucks and SUVs caused a slight bump in expected ABS credit losses.
By
Glen Fest
Ally boosts credit enhancement on next CARAT auto ABS
The performance of outstanding transactions issued via the Capital Auto Receivables Trust platform is weakening, so rating agencies are demanding additional investor protections.
By
Glen Fest
Foursight pays up (a lot) for AAA on its latest subprime auto ABS
Credit enhancement on the senior notes has risen to 36.25% from 28.7% to account for higher expected losses on the collateral; Kroll's base-case range is for 6.75% to 8.75% over the life of the deal.
DriveTime makes $480M splash in deep subprime auto pool
DriveTime's improving loss performance in recent securitizations allowed it to relax the enhancement levels on its first securitization of the year.
By
Glen Fest
Auto ABS investors dancing, but wondering when music stops
Despite riskier terms, rising delinquencies and falling used car values, investors keep buying bonds backed by prime and subprime auto loans and leases.
By
Glen Fest
Santander, Flagship, Credit Acceptance ready $1.9B subprime auto ABS
The three offerings push the first-quarter volume of subprime auto loan asset-backeds past $5 billion, an indication of unwavering demand for the risky asset class.
By
Glen Fest
Ally makes gains in auto lending as other banks retreat
The Detroit company recorded an 11% increase in car loans and leases originated during the fourth quarter, as well as a jump in yields. Ally appears to be benefiting from Wells Fargo's substantial retrenchment in auto lending.
GLS’ next subprime auto ABS earns lower marks from Kroll
The credit quality of the collateral appears to have improved, but investor protections have also decreased; as a result, Kroll is only assigning an 'A' to the senior tranche of notes.
By
Glen Fest
Subprime auto lender Avid making 1st trip to ABS market
The Salt Lake City-based lender homes in on troubled borrowers whose subprime status is primarily tied to a recent bankruptcy protection filing.
By
Glen Fest
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