https://asreport.americanbanker.com/news/usaa-plans-to-float-1-billion-in-auto-abs
Lol “prime” asset-backed securities. Reminds me of those “prime” mortgage-backed securities from over a decade ago. Really getting desperate now, I guess, aren’t we?
3 replies (most recent on top)
The timing/speed of the sale probably says more about the company's view of the credit market over the next while than the quality of the underlying loans. It's not like car loan ABS are some exotic financial mystery meat.
We sell ABS, but we don’t typically unload it this quickly. I disagree with OP that there’s evidence they’re outright toxic, but I wouldn’t put the panic button all the way down. There’s a reason this raised eyebrows.
We sell ABS all the time. Do your homework and put down the panic button.