Year-over-year net losses on securitized prime and subprime auto loans fell in the first quarter, reversing recent trends in the underlying loans of auto ABS deals, and hinting at better days ahead for the sector.
The annualized net loss rate index for prime auto loans was at 0.65% for the first quarter, a 16% drop compared to the same period last year. Delinquency rates also stabilized, compared to the first quarter. The proportion of account balances for which a monthly payment was more than 60 days late was 0.40% in the first quarter. That was relatively flat compared to the same period last year. When compared to 1Q05, it was a modest rebound, said Moody's Investors Service.