SCIWire

Autos lead US ABS

Tuesday 24 January 2017 13:11 London/ 08.11 New York/ 21.11 Tokyo

The auto sector is currently leading the way in the US ABS secondary market.

Overall, ABS secondary spreads continued to edge in last week and into this, particularly at the top of the stack. Autos are seeing similar moves but are doing so despite accounting for the majority of secondary supply and dominating the new issue pipeline.

Rotation activity is likely to mean that auto BWIC volumes will not significantly abate this week, which might generate some pricing softness as trading fatigue grows. However, tone for now is positive across the board, with subprime demand in particular bolstered by a flurry of recent rating upgrades in the sector.

Today's auto BWIC calendar is already building with a seven line list kicking things off at 9:00 New York time. The $41.9+m auction comprises: AFIN 2014-1 A4, CARMX 2014-2 A4, CARMX 2015-3 A3, HALST 2015-A A4, HART 2014-A B, HART 2015-A A4 and HDMOT 2014-1 A4.

None of the bonds has covered on PriceABS in the past three months.

24/01/2017 13:11:12