Following strong performance in the spring, U.S. prime auto loan ABS saw losses creep up slightly last month, according to the latest index results from Fitch Ratings.
Despite this, auto ABS performance remains on track in 2012 with annualized net losses (ANL) at 0.18% in May, 61% below 2011.
Prime ANL moved up only one basis point month-over-month (MOM) and were virtually unchanged in May. 60+ days delinquencies moved up to 0.38% in May from 0.33% in April. This represents a 15% increase as the indices typically exhibit softer performance starting in early summer.
The Manheim Used Vehicle Value Index was at 125.1 in May, still near its record after coming off the peak 126.2 level recorded in March this year. Factors supporting strong used vehicle values include low new car inventories, lower incentives, and improved availability of credit which is supporting sales of both new and used vehicles.
Subprime ANL performance exhibited marginal improvement in May. ANL dropped to 3.76%, from 4.16% in April, and was unchanged over May 2011. 60+ days delinquencies crept up to 2.60% in May, 12% above April's level and 20% higher than a year earlier.
Fitch's 2012 outlook for prime asset performance is stable, while prime ratings performance outlook is positive.
Fitch's auto ABS indices comprise of $55.03 billion of outstanding notes issued from 113 transactions. Of this amount, 79% comprise prime auto loan ABS and the remaining 21% subprime ABS.
Additional information is available at 'www.fitchratings.com'
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