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PRESS RELEASE from provider: Business Wire
This content is a press release from our partner Business Wire. The AP newsroom and editorial departments were not involved in its creation.

KBRA Releases Subprime Auto Loan ABS: Does Seasoning Matter?

February 22, 2019

NEW YORK--(BUSINESS WIRE)--Feb 22, 2019--Kroll Bond Rating Agency (KBRA) releases a research report comparing the loss performance of newly originated subprime auto loans (<12 months of seasoning) versus very seasoned loans (48+ months of seasoning). Conventional wisdom has it that seasoned loans will outperform newly originated loans, all else being equal. However, subprime auto loans appear to buck this conventional wisdom. Interestingly, loan level data shows that seasoned subprime loans generally exhibit higher net losses relative to newly originated loans, at least initially. The report explores some possible causes.

To view the report, click .

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190222005048/en/

CONTACT: Analytical:

Brian Ford, CFA, Structured Finance Research

(646) 731-2329

bford@kbra.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE

SOURCE: Kroll Bond Rating Agency

Copyright Business Wire 2019.

PUB: 02/22/2019 07:30 AM/DISC: 02/22/2019 07:30 AM

http://www.businesswire.com/news/home/20190222005048/en