Capital One is roadshowing its first ever senior/subordinated non-prime auto deal this week, a Capital One official confirmed. The transaction will be led by Citigroup Global Markets and Wachovia Securities and will be structured down to the triple-B level. The official said the deal is expected to hit the market next week, but was unable to comment on the deal's size.
Near-term expectations for price growth fell in the latest consumer sentiment survey from the Federal Reserve Bank of New York, but remains above the central bank's target across all time horizons.
The current deal comes to market with a shorter revolving period and a smaller collateral pool, but other traits are similar to previous deals.
The economy lost 23,000 jobs in July, but the unemployment rate ticked down to 4.1% all the same. The development could embolden both hawks and doves at the central bank.
The structure includes a stop-advance feature, which will prevent the servicer from providing scheduled interest and principal on loans that are 120 days or more delinquent.
The company's affiliate has been issuing non-QM deals that include a small percentage of second liens, some of which also involve alternative documentation.
The latest consumer conditions study from the American Financial Services Association paints a less-than-rosy picture of how lenders expect the second half of the year to play out.
