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Global Credit Research - 02 Aug 2012
New York, August 02, 2012 -- Auto loan, lease and floorplan asset-backed securities (ABS)
maintained their positive performance trends throughout the second quarter
of 2012, according to Moody's Investors Service's summaries
for the three ABS sectors. Moody's notes, however,
that the credit quality of the assets in recent auto loan securitizations
has continued to weaken.
"The average underlying credit of Q2 2012 loan pools continued to
creep back to pre-recession levels, particularly for subprime
pools," says Sanjay Wahi, a Moody's Vice President
and Senior Analyst. "The APRs also saw further compression
due to market competition."
Moody's notes that the performance of loan pools backing 2011 securitizations
remains stronger than Moody's expected when it rated the transactions,
although it remains marginally weaker than the best performing loan pools
backing 2010 transactions.
In auto lease ABS, performance among leases underlying Moody's-rated
transactions continued to remain strong and also better than Moody's
original expectations. The lease sector continues to benefit from
the radical improvement in used vehicle prices because of fewer new vehicles
sales and the trade-ins that often accompany sales, says
In the floorplan ABS sector, payment rates continue to perform at
comfortable margins above amortization triggers and credit losses for
both securitized and managed pools are minimal. Moody's says
the most significant recent development has been a surge in new issuance
amount. During the first half of 2012, public floorplan ABS
issuance totaled $6.4 billion from seven transactions,
closing in on the total for all of 2011, which was $6.7
Moody's quarterly auto ABS sector summaries consolidate key credit
assumptions and performance data used to monitor ratings on outstanding
publicly rated auto loan-, lease-, and floorplan-backed
Moody's subscribers can access the sector summary for auto loan
ABS at http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF293838,
for auto lease ABS at http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF293839,
and for auto floorplan ABS at http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF293176.
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Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
Keith Van Doren
Structured Finance Group
Moody's Auto ABS Sector Summaries: Positive loan and lease performance continues, floorplan issuance surges
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
No Related Data.
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