Auto ABS value explored

Pic© Elf

Category: ABS Secondary markets


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There is still good value to be found among US auto ABS subordinate tranches. This appears to be particularly true for the DRIVE, PART, DTAOT, AMCAR and CARMX programmes.

Spread tiering within non-prime auto ABS endures, with both newer lenders and deeper subprime issuers necessitating higher spread premiums. The tighter end of non-prime auto ABS triple-Bs includes names such as AFIN, AMCAR, SDART and FIAOT, where spread differential to indicative triple-B subprime auto ranges from -10bp for AFIN to 20bp for FIAOT on recent deals.

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