History is filled with examples of a solution being repurposed to create greater benefits in unintended areas – think, Post-it Notes, the microwave oven and Botox. And often, the goals that spur a specific solution reflect a sea-change of thought that carries across markets. Case in point: Residential Property Assessed Clean Energy financing (R-PACE). In 2019, R-PACE may have declined but the...
With political turmoil, mixed economic signals and some industry-wide changes afoot, unpredictability seems to be the hallmark of the RMBS market. Since unpredictability can make people more dependent on predictions and past experience, we’ve identified some of the key events of 2019 and where they might lead in 2020.
Time keeps on slipping into the future (well, at least since 1976), bringing with it momentum that has the power to shift markets. If we do our homework, we can see where the momentum will take us in 2020.
Momentum changes everything – it’s hidden, but you know it when you feel it. It has the power to shift markets, so if you find where it’s headed, best to get there first. As we near year end, we’ve identified clues as to where momentum will take subprime auto in 2020, and in subprime auto, the 2019 numbers tell the story.
S&P’s recent downgrade of Class E notes from CPS Auto Receivables Trust (CPSART) 2016-B, 2016-C, 2016-D and 2017-A from BB- to B+ is prompting investors to take a closer look at other deals. It also prompted us to go back over the data from our 360 degree market study to see which constituency group will be most sensitive to the latest news.
Originations and Issuances, by the Numbers Total auto loan debt increased to $1.30 trillion in Q2 2019, up from last year’s $1.24 trillion, and accounted for 9.4% of the $13.86 trillion in national household debt – greater than credit card debt, but less than student loan and mortgage debt, according to Federal Reserve Bank of New York data.
ABS Issuances, by the Numbers Ten securitizations totaling $3.6 billion closed in Q1 2019, down 14% versus a year ago. PeerIQ attributed this decrease to “market volatility,” but noted this still represents the fourth-highest issuance in any quarter. Average deal size decreased to $366 million in Q1 2019, down from $0.6 billion the previous year. SoFi led the way with three deals totaling $1.5...