Auto ABS market: a quiet start | Griffin Dealer Partners posted on the topic | LinkedIn (2024)

🚗 Is the ABS Market Roaring Back? 🚗The auto asset-backed securities market has roared to life in 2024, marking a significant upturn with a 38.7% increase in volume compared to last year, reaching $62.4 billion by mid-April. 🚀 Despite a robust start, concerns loom as origination volumes trend downward due to tightening credit and affordability challenges, potentially impacting future issuance volumes.💡 Industry experts suggest that issuers might be accelerating their funding plans in anticipation of market uncertainties tied to the upcoming U.S. presidential election. Additionally, the stability in interest rates provided by the Federal Reserve's current stance might be influencing more aligned and profitable market conditions.For those navigating the auto finance landscape, staying informed and agile in response to these market dynamics will be key 🔑. Are you planning to securitize your portfolio earlier than expected? #autofinance #securitization #markettrends

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Auto asset-backed securitization volume outpaced last year’s levels in early July as spreads tightened and banks offloaded consumer debt. #autofinance #autoindustry #capitalfunding https://hubs.la/Q01X-2J00

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Repossession agents are facing headwinds as they try to meet growing lender demand, and the situation is now drawing the ire of regulators. #autofinance #autoindustry #repossessions Read latest feature: https://hubs.la/Q020rr1B0

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After a brief lull for May’s Fed meeting, the #US #ABS primary market returned with 14 deals, including notable transactions from Ford and General Motors. Brian Chin, head of flow ABS at MUFG said, "Demand has been very good for the past three or four months, and my expectation is that it will likely remain strong in the near term, with a lot of transactions in the market". He also noted that although auto deals have dominated recent supply, expectations are high for increased diversification across sectors. Another ABS syndicate #banker agreed, attributing the lull in supply to the Fed meeting and forecasting a busy period in the market after the central bank meeting. Jim Manzi, a senior director at S&P, said this lull in supply might have been a case of the market catching its breath after unexpectedly high issuance. He also observed that despite a slight uptick in delinquencies from historic lows, recent deals in the market have been well received. Sign up to read the rest of the story: https://lnkd.in/ejFJcNptWritten by Diana Bravo, US securitization reporter at GlobalCapital #capitalmarkets #securitization

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Competition is ramping up across the auto finance industry as incentives increase, prompting banks and credit unions to keep a closer eye on rates. #autofinance #autoindustry https://hubs.la/Q02q2qbc0

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How quickly did LTVs in lenders portfolio's shift as a result of fluctuating used-vehicle values? We analyzed the data. #autofinance #underwriting #negativeequity https://hubs.la/Q02rLln40

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September proved to be the busiest of any month since the global financial crisis in terms of the number of placed public securitisations, totalling 25 deals across Europe and the UK, according to SCI’s latest ABS Markets Monthly. In volume terms, it was the biggest month this year for placed euro-denominated deals – though not for sterling, which is still held by the £3,638m placed in May: https://lnkd.in/e_4K5nyJ#securitisation #securitization #structuredfinance #structuredcredit #RMBS #autoABS #consumerABS #secondarymarket

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(Q) Could you please advise why the 2 year annuity in your example is traded at USD 15m if it is worth USD 17.35m? Shouldn't it be USD 17.35m? If the borrower only gets USD 15m, the actual yield is higher than 10%, and the borrower will be paying more than 10% of interest?(A) Yes. There's an important difference between:(1) Valuation - a private assessment undertaken about an asset, that we would not normally share with a potential buyer or seller, assuming we're contemplating a trade; and(2) Traded prices, or market prices - either already quoted in a market, or to be discussed as part of a negotiation.---In the simple (and extreme) example I made up, there is a significant difference between our private / internal evaluation of USD 17.35m Present Value, and the transaction purchase price we were able to achieve, of USD 15m.Market / transaction prices are sometimes less than Present Values, as here; sometimes they are more, and sometimes they are equal.In the example you've quoted, if the market / traded price stabilised at USD 17.35m, then the Net Present Value of the deal would be 17.35 - 17.35 = 0.---If market / traded prices were always equal to Present Values, then Net Present Values would always be zero.The reasons that differences arise, is that different market participants form different private opinions about asset values.Hoping this helps.See references in comments + original example

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Subprime consumers missing payments, having deeper negative equity, anemic real wages, and higher interest costs have soured the auto market. That's according to one analyst, but he brings the data!https://bit.ly/41XYGlZ#glenviewfinance #subprimefinance #usedcardealer #autofinance #creditbuilder #independentdealer

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With auto loan interest rates hitting 20-year highs, dealers have seen a massive increase in all-cash deals and large down payments over the last six months. This trend will continue into 2024 causing downward pressure on F&I income and reinsurance profitability. As dealers are looking for additional products to offer in F&I, Deposit Protect provides value for your customers by preserving any down payment, rebates, or trade equity. With baked-in dealer benefits for retention, this is a must-have product for our current F&I environment. Reach out to me to learn more about how this product will increase overall products-per-deal leading to additional monthly revenue and higher repeat customers. #carsales #automotive #ads #deposit #inflation #money #investment #protection #marketing #customer

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