Auto ABS

Moody's had lowered the residual value loss a full percentage point, but did not mention whether it would lower the credit loss expectation.

HART 2023-A has a yield supplement overcollateralization amount (YSOA) of 10.11% as a percentage of the aggregate pool amount of $1.4 billion. It was 10.76% on HART 2022-C.

The latest AESOP includes medium- and heavy-duty trucks, plus different minimum depreciation rates of non-program vehicles (NPVs) to account for their market values.

The company is offering to swap five series of bonds, including its 5.625% unsecured notes due 2025 and 10.25% unsecured notes due 2030 for new secured notes due 2028 that pay 9% in cash or 12% in-kind. The debt will be secured by a second-priority claim on assets including vehicles.

Santander Consumer USA on Wednesday delayed the sale of $942 million of bonds backed by subprime auto loans as the deepening Credit Suisse Group AG crisis added to turmoil in debt markets.

ARI has increased hard credit enhancement compared with previous transactions, however, which helps to the potential risk of offset negative excess spread.

The pending transaction has a class D, unlike the previous transaction, the Santander Drive Auto Receivables Trust, 2023-1, and a higher cumulative net loss expectation.

Subordination levels for classes A, B and C are 38.12%, 20.84%, and 0%, respectively, down from previous levels of 47.63%, 33.68% and 18.18%.

When the deal closes the notes will have an overcollateralization level of 5.75%, which will increase to a target of 14.75%.

NextGear reduced the recreational vehicle and daily rentals maximum, while increasing the maximum concentration of heavy-duty trucks and salvage vehicles.

Chris Martin knew he needed a bigger car as the birth of his fourth child approached, but he and his wife were already $14,000 underwater on their two vehicles.

American Car Center told employees the business was closing its doors, a day after it pulled a $222 million bond sale from the market, according to people familiar with the matter.

CRVNA 2023-1's collateral pool has a non-zero FICO score of 705, interest rate of 11.83%, original term of 72 months and remaining term of 70 months.

The transaction, secured almost entirely by installment loans on new vehicles, can be upsized to $1.6 billion, and notes will be priced over the I-curve.

While debt outstanding and performance issues are up, and new securitizations are down as expected, only auto ABS showed early signs of issuance growth.

S&P views the transaction's exposure to environmental credit factors as above average, given that the collateral pool primarily comprises vehicles with ICEs.

Similar to recent transactions, the collateral pool includes loans with an original term greater than 72 months, which Ford adjusted for in the underwriting.

The residual value loss is one percentage point higher than the previously rated 2021-2 transaction, due to an increase in the notes' base residual settings.

For the current securitization the collateral pool includes 0.6% of loans extended to marginally qualified borrowers.

The FCRT 2023-1 has significantly reduced the concentration of both called assets and Greenlight Loans in the pool, with mixed credit implications.