Auto Lending is Losing its Luster for Banks

By Andy Peters

Amid shrinking yields, rising delinquencies and repeated warnings from regulators about frothy market conditions, several banks said on earnings calls that they plan to scale back or hold the line on indirect auto lending

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Latest News

USAA Readies Another $280M of Catastrophe Bonds

– Standard & Poor’s expects to assign B- and B ratings to the Series 2016-II class 3 and 4 notes, respectively, which cover losses in all 50 states and the District of Columbia from tropical cyclones, earthquakes, and other natural disasters.

Crédit Agricole Consumer Unit Plans €1.3B German Loan ABS

– The deal through the Retail Consumer GP Germany trust includes €975 million in Class A notes with a provisional ‘AAA’ structured finance rating from Standard & Poor’s, backed by receivables from consumer loans originated by CreditPlus Bank AG in Germany.

Cantor, Société Générale Marketing $787.5M CMBS

– CVCRE 2016-6 will issue tranches of super-senior class A notes tranches and three subordinate classes. The senior A notes have a preliminary triple-A rating structured finance rating from Morningstar and Fitch Ratings.

Engs Preps 2nd Transportation Equipment Loan Securitization

– While the company provides both loans and leases, the collateral pool for this transaction is represented exclusively by loans. The deal includes a three-month prefunding period during which $30 million of the $298 million of collateral will be aqcuired


Featured Articles

Is Lending Club Late to the Auto-Finance Party?

– The San Francisco-based online lender, which grew rapidly by refinancing Americans' credit card debt, now plans to make a similar pitch to consumers who have car loans.

What’s So Unusual about Sprint’s Airwaves Securitization

– The wireless carrier, though only rated single-B, has more leeway from existing investors to enter into a transaction like this than even some investment-grade companies, according to Covenant Review.

What’s Really Remarkable about Appeals Court Ruling on CFPB

– While attention has focused on the DC Circuit's holding that the CFPB’s organizational structure is unconstitutional, the court made two other critical rulings that put a stop to the CFPB’s aggressive exercise of its enforcement authority.

Why This Florida Regulator is Crying Foul Over Two Letters

– The Florida Public Service Commission, which oversees the state's utilities, wants credit rating agencies to stop identifying a type of bond issued by those companies as "structured finance." The "sf" designation is undeserved and has increased utilities' borrowing costs, the regulator argues.

Is Goldman's 'Marcus' a Serious Threat to Banks?

– Goldman Sachs' newly launched consumer lending website is aimed at some of the very same customers that big banks and marketplace lenders covet, yet there are plenty of questions about its business plan, its ability to manage credit risk and the prospects of online lenders in general.

Sprint Turns to the Airwaves to Buy Time for Turnaround

– The wireless carrier is entering into a sale-and-leaseback transaction for a portfolio of spectrum licenses granted by the U.S. government; proceeds of up to $7 billion will provide it with enough capital to fund operations and meet high yield debt maturities over the next few quarters.

Old CMBS Bubble is Resurfacing

– More than $200 billion of the most poorly underwritten commercial mortgages originated before the financial crisis come due this year and next, many of them still underwater.

Online Lending: 'Plenty of Room' to Grow. Do Banks Fit In?'

– Marketplace lenders' share of the consumer and small-business loan markets is small now, but is expected to grow substantially in the coming years. Banks looking to get in on the action have two choices: team up with these established players that have already perfected the technology or try to beat them at their own game

Takata Recall Puts Auto Lease ABS at Higher Risk of Losses

– The unprecedented scope – approximately 34 million vehicles from numerous manufacturers are affected – has resulted in a scarcity of replacement parts. This makes it difficult for remarket cars that are repossessed or returned at the end of a lease

Fannie, Freddie Helping Older Apartment Buildings Go Green

– Both government sponsored enterprises discount the interest rates on loans for buildings with one of several “green” certifications; they also underwrite some of the projected savings from upgrades on buildings of a certain age, allowing owners to take out bigger loans.


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Current Issue

Old CMBS Bubble is Resurfacing

More than $200 billion of the most poorly underwritten commercial mortgages originated before the financial crisis come due this year and next, many of them still underwater.

Current Issue