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Car-loan market suffers losses for a third straight month

Car loans—and the bonds built on repackaged loans—suffered losses in September for a third consecutive month, Fitch Ratings said Monday.

Losses rose on both prime and subprime car loans, while delinquencies also moved higher, according to the latest monthly auto loan ABS (asset-backed securities) index from Fitch. The subprime car-loan market is generally understood to be loans extended to borrowers with credit scores below 600.

See also:Subprime car loans aren’t subprime mortgages yet still worry Jamie Dimon and, now, John Oliver

Fitch’s ABS index tracks the performance of $97 billion of outstanding securitized collateral, with 58.5% of the index, or $57 billion, comprising prime ABS collateral, and the remaining 41.5% tied to subprime collateral.

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