Fitch: U.S. Auto ABS Delinquencies Speed to 10-Year Highs in January.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- 60+ day delinquencies in U.S. prime and subprime auto asset-backed securities (ABS) accelerated in January 2008 hitting the highest levels in 10 years, according to Fitch Ratings. Fitch's prime 60+ delinquency index was 0.77% in January 2008, representing a 10-year high after jumping 11.6% higher versus the prior month, and 44% higher than a year ago. Subprime delinquencies sped through the 4% level for the first time since late 1997 reaching 4.03% last month, a 10% jump versus December 2007, while rising 43% versus January 2007. Fitch's prime auto ABS annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. net loss (ANL ANL - Argonne National Laboratory ) index was at 1.28% in January 2008, a 4.5% decline over December 2007, but 44% higher than in January 2007. Meanwhile, subprime ANL were 8.48% in January, a 12% increase over December 2007, and the highest level since January 2007. When looking back to 2002, January's prime and subprime delinquency levels were well above levels produced in each of the preceding six years. "Of particular concern regarding both delinquency and ANL performance, is that the average rate of monthly and yearly increases produced by the indexes over the past year has been ticking-up at a faster pace each month without any slowdown," said Director Hylton Heard. "Besides the upcoming seasonally stronger period when consumers start to receive their tax refunds, there appears to be few positive factors present that can potentially slow the recent weakening trend in delinquency and loss performance in coming months." Auto loan ABS issuance bounced back in January 2008 following the recent year-end slowdown with $5.85 billion coming to market, a 69% surge versus January 2007. Five prime auto loan deals were issued totaling $5.4 billion which included transactions issued by USAA USAA United Services Automobile Association USAA Urban Superintendents Association of America USAA United States Achievement Academy USAA United States Arbitration Act of 1925 USAA United States Axemen's Association USAA United States Air-Table-Hockey Association , Carmax, Nissan, Ford Credit, and GMAC GMAC General Motors Acceptance Corporation GMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance . A $440 million deal sold by Wachovia accounted for the only non-prime deal issued in January. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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