KBRA Releases Research – Auto Loan ABS: Recoveries Pressured by Declining Valuations

February 22, 2024 4:40 PM EST

NEW YORK--(BUSINESS WIRE)-- KBRA releases a research report analyzing auto loan ABS recovery rates. Over the past year, auto loan ABS recovery rates have been trending down, hitting their lowest January reading since 2010 in KBRA’s Prime and Non-Prime Auto Loan Indices. The decline mainly reflects falling used vehicle values which increased to record highs during the pandemic, as well as higher repossession costs. We expect recovery rates to remain at depressed levels throughout 2024, as defaults over the next year are likely to include a large portion of defaulting loans originated during the time of heightened automobile valuations. This will inevitably place upward pressure on securitized net losses.

Click here to view the report.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1003290

Brian Ford, Head of Structured Finance Research
+1 646-731-2329
[email protected]

Kaci Emrich, Analyst
+1 646-731-1216
[email protected]

Brajean Ramos, Senior Analyst
+1 646-731-2417
[email protected]

Business Development

Rosemary Kelley, Senior Managing Director, Head of Structured Finance and Project Finance
+1 646-731-2337
[email protected]

Source: Kroll Bond Rating Agency, LLC

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