Auto ABS

The size of the two classes of notes on Volkswagen Financial Services' Compartment Driver UK SK deal is to be determined; they will be backed by receivables on 24,238 prime retail customer lessors.

The GMF Floorplan Owner Revolving Trust 2017-3 transaction is the second transaction backed by dealer inventory finance receivables to be issued by the captive lender this month.

More than 20% of the pool is comprised of well-seasoned subprime auto loans previously securitized in American Credit Acceptance's asset-backed deals in 2012-2014.

Prestige's $335.2m portfolio is the first of the year for the Utah lender specializing in funding buyers emerging from bankruptcy. Flagship is selling $223m in notes backed by loans to deep subprime customers.

Average FICOs are declining in both lenders' pools, and Nissan Motor Acceptance Corp. is including more borrowers with sub-700 scores in its prime portfolio than in three prior auto-loan securitizations.

GMF's second deal of the year comes as monthly payment rates on dealer financing is declining and more dealers are relegated to its higher-risk credit tiers.

Borrowers have an average FICO of 749, up two points from its earlier transaction this year and the highest of any past HART transaction; and the concentration of borrowers with FICOs lower than 650 is down four percentage points, at just 3%

A German judge's support behind efforts to ban diesel-engine vehicles in Stuttgart could set in motion a decline in performance for German and European auto loan securitions, says Moody's.

Both lenders are on their third auto-loan securitization of the year, with little variance from previous credit enhancement or expected loss levels.

Moody's believes that rules grandfathering existing transactions increase the risk that these deals could be left unhedged; it may downgrades some European RMBS and U.S. student loan-backed securities.