Historically, the vulnerability of subprime borrowers to economic shock has been subprime auto participants' biggest fear. Now that such shock is here, we polled over 100 participants of all types, including originators, investors, trustees and servicers, to gauge and compare market sentiment versus our studies done in 2019 and pre-Covid 2020.
It's time for participants to buckle up and consider the road ahead. This webinar will help participants plan their next move by revealing expectations and surprising variances across market groups.
Highlights of the webinar include:
- Recent reports show delinquencies are not spiking as one may have anticipated, in large part thanks to the intervention of government and servicers in providing forebearances. There remains uncertainty as to what may happen when the relief ends. No one is sure what's around the corner.
- Survey participants think downgrades are likely, with originators the most concerned and investors the most certain. So far there have been consistent and stable ratings in the auto space even during this crisis. However, particpants' proximity to data and deals may account for some of the market sector variations in responses to the study.
- Joseph Cioffi, Chair, Insolvency, Creditors' Rights and Financial Products
- Ines Beato, Senior Vice President, US ABS - Global Structured Finance, DBRS Morningstar
- Sean Morgan, Vice President of Finance, Westlake Financial Services