U.S. regulator preparing to sue Santander bank over auto loans: sources
https://www.investing.com/news/stock-market-news/us-regulator-preparing-to-sue-santander-bank-over-auto-loans-sources-910555
Sunday 26 November 2017
Friday 17 November 2017
The car loan crunch: Help is out there for struggling auto owners
The car loan crunch: Help is out there for struggling auto owners
Auto Loans: A Silent Bubble Continues to Get Bigger
Auto Loans: A Silent Bubble Continues to Get Bigger
https://www.lombardiletter.com/auto-loans-a-silent-bubble-continues-to-get-bigger/21855/
https://www.lombardiletter.com/auto-loans-a-silent-bubble-continues-to-get-bigger/21855/
Wednesday 15 November 2017
US Household Debt Reaches Record $13 Trillion: Watch Subprime Auto Loans
US Household Debt Reaches Record $13 Trillion: Watch Subprime Auto Loans
Cars = Freedom! Until you fall behind in the payments
Cars = Freedom! Until you fall behind in the payments
https://www.treehugger.com/cars/cars-freedom-until-you-fall-behind-payments.html
https://www.treehugger.com/cars/cars-freedom-until-you-fall-behind-payments.html
6.3 million Americans are 90 days late on their auto loan payments
6.3 million Americans are 90 days late on their auto loan payments
https://www.washingtonpost.com/news/wonk/wp/2017/11/14/6-3-million-americans-are-90-days-late-on-their-auto-loan-payments/
https://www.washingtonpost.com/news/wonk/wp/2017/11/14/6-3-million-americans-are-90-days-late-on-their-auto-loan-payments/
Tuesday 14 November 2017
There are worrying signs in a $200 billion corner of the auto loan market
There are worrying signs in a $200 billion corner of the auto loan market
http://uk.businessinsider.com/there-are-worrying-signs-in-a-200-billion-corner-of-the-auto-loan-market-2017-11
http://uk.businessinsider.com/there-are-worrying-signs-in-a-200-billion-corner-of-the-auto-loan-market-2017-11
..In a post out Tuesday, researchers led by Andrew Haughwout highlighted the nearly doubling of the rate of delinquencies in subprime auto loans originated by auto finance companies since 2011. "Since 2011, the overall delinquency rate of loans originated by auto finance companies has significantly deteriorated," the report said.
The 90+ days delinquent rate for subprime auto loans originated by auto finance companies is up more than two percentage points since 2014, and now stands at close to 10%, according to the report. That's higher than the highest rate following the dotcom crash, and close to the highs in 2009 after the financial crisis. ..
Monday 13 November 2017
Chinese auto asset-backed securities grow like topsy
Chinese asset-backed securities grow like topsy
Issuance of securitised assets rose 61 per cent in the first half of this year and could climb to $170bn for the full year, according to research by Bank of America Merrill Lynch. But are foreign investors ready to dive in?
The answer appears to be a qualified yes. Given memories of how the US collateralised debt obligation (CDOs) market imploded 10 years ago, it is not surprising that foreign investors are cautious and generally avoid local issuers. Nevertheless, car loan asset-backed securities issued by well-known international companies such as Volkswagen, Ford Motor and others are proving popular, analysts said.
“Right now in asset-based finance in China, the area that foreign bond investors want to look at is foreign car manufacturers doing financing for auto loans,” said Alexander Batchvarov, managing director at BofA in London. “Currently this is giving a 5 to 8 per cent yield in renminbi.
This is not a yield you can get anywhere in European investment grade bonds.” Effectively, investors are putting their trust in the reputation of the US and European carmakers to ensure that due diligence on loan quality is being observed and transparency standards upheld.
So far, while the Chinese economy continues to grow strongly, the rates of delinquency on such asset-backed securities are low, analysts said. Liquidity levels have also been helped by strong issuance.
Total auto asset-backed securities issued in the first half of the year hit Rmb60bn, according to Standard & Poor’s.
Monday 6 November 2017
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