With performance in the auto ABS market suffering from lack of available credit to consumers, decreasing used vehicle values, and the rising unemployment rate, it seems only natural that new deal flow would be sidelined.

But despite the downgrades and negative outlooks, subprime auto issuer AmeriCredit Corp. has been trading in the secondary market and closing new deals - when even prime auto ABS issuers have stepped back from the space. This situation, combined with a recent $306 million deal, Honda Auto Receivables Owner Trust 2008-2 (see page 8), and an upsized $600 million Nissan Motor Corp. deal that closed at the beginning of the month, has analysts noticing there is still relative interest in auto ABS despite the expected losses.

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