June 16, 2024
News

Securitized nonprime auto loan losses increase by 202 basis points

Net losses and delinquencies across high-quality and subprime securitized auto loans showed a month-over-month improvement in April. However, the year-over-year comparison revealed a deterioration in performance. This improvement was partly attributed to tax refunds enabling borrowers to meet their loan obligations, as per the latest auto loan index from Kroll Bond Rating Agency.

FAQ

  • What factors contributed to the improvement in auto loan performance in April?
  • How did tax refunds impact consumers’ ability to make loan payments?

Conclusion

Overall, the latest data suggests a mixed picture for the auto loan market, with some positive trends in the short term but lingering concerns about long-term performance.

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