Auto sector transformation, economic turbulence weakening ABS performance

Moody's Talks - Securitization Spotlight

As borrowing costs continue to rise and consumers’ purchasing power wanes, borrowers’ ability to make debt payments is weakening. What makes auto ABS among the securitization sectors most vulnerable to this deterioration in consumers’ finances? And what does the sector’s ongoing transition to electric power mean for transactions we rate?

Guests: Maxwell Price, Analyst – Structured Finance Group, Moody’s Investors Service; and Robin Liu, Vice President – Structured Finance Group, Moody’s Investors Service

Host: Aaron Johnson, Vice President – Research, Moody’s Investors Service

To read more on this topic, visit Securitization Spotlight page on Moodys.com (some content only available to registered users or subscribers).

• Auto-related ABS – US: Slower used auto price drops will ease asset risks; trends for BEV values are less certain
• Auto ABS – US: Worsening performance among non-prime borrowers will strain junior note protection
• UK Auto ABS – Europe: Auto sector transformation spreads to used car market, a credit negative for auto ABS