DBRS says non-prime auto loan ABS issuance edges up

Rating agency DBRS said in a report this week that non-prime auto loan ABS issuance has increased over last year at this time. In contrast to the captive and bank issuers, finance companies have also upped their market share in both the prime and non-prime ABS markets, the analysts say. Non-prime issuance is up 2% year over year, though prime auto loan ABS issuance has fallen dramatically to nearly half of what it was in 2006.

DBRS analysts note that the most significant growth of finance companies in the prime auto loan ABS market this year has been driven by CarMax and AmeriCredit. CarMax, for one, will have issued more auto ABS in the first half of 2007 than it did for the entire year 2006 when it totaled $1.2 billion, they say.

Source: DBRS