Despite last year's delinquency spike, the effects of hurricanes Katrina and Rita as well as increased charge-off rates in subprime auto loan portfolios for September, analysts expect the auto loan ABS sector to make a strong finish for 2006.

In line with expectations for the sector, primary auto loan ABS issuance stood at $64.1 billion in September, down 15% from the $75.8 billion issued the same period the year before. Market watchers continue to blame industry consolidation for the drop-off, as well as a more steady focus on the credit quality of borrowers, according to a special sector report from Standard & Poor's.

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