A shift in focus by the two biggest subprime lenders, Santander and Americredit from subprime to prime lending will give their smaller competitors room for growth, according to John McElravey, head of consumer ABS research at Wells Fargo Securities.

The top two lenders still account for the bulk of subprime auto ABS issuance, but year-end 2013 volumes show that they are slowing down. Overal issuance of subprime auto ABS issuance rose to $21.5 billion in 2013 from $18.0 billion in 2012. However, Americredit and Santander deals accounted for about 61% of the subprime auto securitization market  in 2013 down from 75% in 2012.

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