Experian Information Solutions' research indicates that, while the credit quality of auto loans may be slipping, it remains high enough to ensure the strong performance of the 2011 and 2012 vintages of securities backed by such loans.

Auto ABS, in fact, performed extremely well through the recent financial crisis, drawing new investors, and spreads have tightened on new deals this year. Given the health of the underlying loans, it's clear why. In its most recent State of the Automotive Finance Market report, covering the fourth quarter of 2011, Experian said delinquency rates have been falling since 4Q09.

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.