Warehouse Lenders Boost Flagship’s Funding Facility

Flagship Credit Acceptance’s warehouse lenders bumped up and extended its credit line last month, according to a Kroll Bond Rating Agency presale report released last week. The five financial institutions backing the funding facility increased its capacity by 12.5% — to $900 million — through October 2020. Flagship has approximately 90% capacity remaining on the […]

Tricolor Auto Preps First Rated Securitization

Buy-here, pay-here lender Tricolor Auto Acceptance LLC is preparing to issue its first rated securitization, a $101.7 million transaction slated to close Nov. 21, according to a Kroll Bond Rating Agency presale report released this week. The securitization is backed by loans with a weighted average Fico score of 583 and a weighted loan-to-value ratio […]

Westlake Leads in Subprime ABS Volume With Third Securitization

Westlake Financial Services is one of the main drivers of new auto asset-backed securitization volume in the subprime space following its third securitization of 2018, Brian Ford, the chartered financial analyst of structured finance research at Kroll Bond Rating Agency, told Auto Finance News. The latest $1 billion deal pushes Westlake’s total volume to around $3 […]

Honor Finance’s ABS Downgrade Seems to Signal Market Contraction

Subprime auto lender Honor Finance’s 2016 ABS issuance is the first post-crisis downgrade — an indication that the industry’s contraction period is coming sooner than expected, Joe Cioffi, chair of the insolvency, creditors’ rights, and financial products practice group at Davis & Gilbert, told Auto Finance News today. “[The downgrade] is a reminder that ratings are […]

Auto ABS Volume Climbs 20% Bucking Expected Declines

Analysts at Kroll Bond Rating Agency Inc. were “surprised” to report increases in auto loan ABS issuances in June because they forecasted a contraction period, Brian Ford, the chartered financial analyst of structured finance research, told Auto Finance News. The rating agency reported a 20% year-over-year increase in both prime and nonprime auto loan issuances, […]

Ballooning Losses at Honor Finance Spark KBRA Downgrade Warning

Kroll Bond Rating Agency is on track to issue its first-ever auto securitization downgrade, as losses mount for subprime lender Honor Finance. KBRA put the 2016 securitization — Honor Finance’s inaugural transaction — on “watch downgrade” last week. Honor Finance’s losses “rose considerably over the past few months,” higher than initial expectation for the $8.86 […]

Honor Finance’s Securitization at Risk for Downgrade, KBRA Warns

Subprime auto finance company Honor Finance received its second warning last week that its 2016 inaugural securitization is at risk for downgrade. Kroll Bond Rating Agency placed the deal’s $8.86 million Class C notes on “watch downgrade” because of higher-than-expected losses and continued management turnover, according to a May 23 surveillance report. Currently, cumulative net […]
  • Nicole Casperson
  • May 29, 2018
  • Risk
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