Delinquencies on US Auto-backed Securities Jump 22%
Prime auto U.S. ABS delinquencies jumped 22% on a monthly basis in May, while net losses improved 17% in May over April clouding expectations for the coming summer months, according to Fitch Ratings. The improvement in net losses was mostly a result of seasonal patterns and losses remain near record high levels.
Prime 60+ days delinquencies rose to 0.72% in May, up from 0.59% in April.
The increase in delinquencies last month was noticeably higher than previous years during this period.
Delinquencies were 26% higher in May versus 2008 levels; they hit a record high of 0.87% in early 2009 but are back off of those levels.
Despite historically high loss rates, the ratings of senior classes of notes continue to perform within expectations, with minimal negative rating actions issued in 2009 to date.
Fitch also says the European auto ABS sector experienced an increased number of negative factors during Q109, including a rise in delinquencies and net losses.
The Fitch 60-180 Delinquency Index (Fitch DI) breached an historic peak in the first quarter, increasing to 1.5% (up 20 basis points compared with Q408). Since December 2007, the Fitch DI has increased by 50 basis points to 1.5% and is not expected to stabilise during the next quarter (Q209).
The Fitch Net Loss Index (Fitch NLI) increased to 0.5% during Q109 (up 40 basis points compared with Q408), but remained within historic levels.
The Fitch Excess Spread Index (Fitch ESI) was slightly lower during the first quarter of the year, and stood at 2.3% (down 20 basis points compared with Q408).
For details see: Tyre Tracks – Fitch European Auto ABS Index.
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
