The increasing vehicle sales and used car prices as well as the tight spreads are aiding the growth in subprime auto ABS, according to Standard & Poor's analysts in a e-mailed note released this morning.
Citing the Federal Reserve's senior loan officer survey, analysts reported that banks eased their lending standards on automotive loans in the first quarter.
Issuance has reached $6 billion ($18 billion annualized) year-to-date, which comprises almost a fourth of auto loan ABS this year.
Analysts reported that this is in comparison to $12 billion for all of last year, excluding leases and dealer floor plans.
