Subprime Finance Causes Concerns

By Staff Writer May 28, 2019

Subprime auto finance performance is expected to deteriorate soon, according to a 360-degree market study released by Credit Chronometer.

The study reports that a negative performance outlook is impacting participants’ views on the sufficiency of credit enhancements and the ability to achieve desired ratings.

Investors express greater concern than other market participants regarding credit enhancement levels, especially for subordinated tranches.

Credit quality concerns center on the vulnerability of subprime borrowers to changes in the economy.

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Last modified on Saturday, 08 June 2019 18:29