Santander Consumer USA Holding’s second subprime auto loan securitization of 2016, launched this week, provides a few clues as to why the company announced Wednesday it would be pulling back its originations in the problem-credit space.

The credit quality of the $1.21 billion Santander Drive Auto Receivables Trust (SDART) 2016-2 is similar to that of the sponsor's deals of the previous few year, with a weighted average FICO score of 600, although Fitch notes that the concentration of scores greater than 600 is 40.5% -- “toward the higher end” of the 31.1%-45.9% range seen in deals since 2012. “The concentration of unknown FICO scores (15%) remains at the platform’s highest recorded levels over the past three years,” the presale states.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.