Subprime ABS solid in May, aided by used market, from Subprime Auto Finance News.
While the subprime sector produced positive results, Fitch Ratings reported losses for U.S. prime auto loan ABS ticked up in May, but overall asset performance remains “solid.”
Fitch indicated that 60-day delinquencies in the prime space crept 7 percent higher in May to 0.30 percent on a monthly basis. But analysts said those delinquencies are within 2013 levels — just 3.4 percent higher.
The firm noticed annualized net losses were virtually unchanged at 0.24 percent in May versus 0.22 percent in April. The rate was elevated versus May of last year, but Fitch explained this situation stemmed from the second lowest record rate of 2013 established that month at 0.17 percent.
“In short, asset performance is strong in 2014 and improved versus the solid pre-recession 2005-2006 period,” Fitch said.