Kroll Bond Rating Agency (KBRA) releases its auto loan indices for the month of March. Securitized auto loan credit performance in March improved across virtually all the ABS shelves included in KBRAs prime and non-prime auto loan indices. With average federal refunds down just $20 dollars year-over-year through the end of March ($2,893 in 2018 versus $2,873 in 2019), concerns that lower tax refunds could meaningfully impact ABS collateral performance appears overblown. We expect delinquency and loss rates will remain steady or continue to improve in April as borrowers continue to receive tax refunds.
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KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
Ford, CFA, Structured Finance Research