Micro subprime retail auto ABS deals offer investors a large pickup in spread when compared to the broader subprime auto ABS transactions, according to a Barclays Capital  securitized products research report.

Those from so-called micro issuers also benefit from a conservative structure, with high levels of hard credit enhancement and significant excess spread. These factors allow the deals to maintain a strong price/yield profile under adverse stress scenarios. The dollar price on micro subprime retail auto ABS class A, noted Barclays, holds up across even the most severe performance scenarios the bank analyzed.   

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