As we said in our last post regarding vulnerability in credit enhancements and litigation risk, subprime auto ABS investors have historically slept easy in light of ample credit enhancements that have provided a protective cushion from losses. Based on the reactions, it seems some have been stirred from their slumber. The question now is what’s next? Will market participants, after kicking the...
Joseph Cioffi was quoted in a Structured Credit Investor article, “Pre-Emptive Lawsuits Envisaged.”
Joseph Cioffi was quoted in a SubPrime article, “Davis & Gilbert Experts Find 4 Signs of Subprime Auto ABS Market Vulnerability.”
Joseph Cioffi was quoted in a Bloomberg Law article, “Legal Challenges Tied to Subprime – Auto Bonds Are Possible: Wells Fargo.”
Credit Chronometer was featured in a Wells Fargo Securities – Consumer ABS Research article, “ABSolute Value: Legal Event Risk and Subprime Auto – Caution Warranted With Spreads at Multi-Year Tights.”
Joseph Cioffi was quoted in a GlobalCapital article, “Subprime Auto ABS Credit Enhancements Spark Debate.”
Historically, investors in subprime auto asset-backed securities (ABS) have been able to sleep well at night. They have rested easy in part because credit enhancements in securitizations have protected them from losses. Today, due in large part to the safety expected from credit enhancements, rumblings about the parallels between subprime auto lending and pre-financial crisis subprime mortgage...
