ABS related to autos, including deals backed by floorplans and leases, is likely to rise about 6% in volume during 2012, to $80 billion, Standard & Poor's said today. The figure for 2011 through Dec. 1 is $69 billion, according to the Securities Industry and Financial Markets Association (SIFMA).
S&P's projection is based on a roughly 6% rise in auto sales forecast for next year, to about 13.4 million units. Behind the modest growth are strong prices for used cars, healthy collateral performance, and demand for auto loans, the agency said. "We expect net losses for prime and subprime collateral to remain stable next year," S&P added.
The Federal Reserve's Senior Loan Officer Survey reported higher demand for auto loans over the latest several quarters.