Table of Contents
Roadmap to Retail Auto Loan ABSs
Introduction
Benefits of Auto Loans
Auto Loans — Collateralized Consumer Assets
Market Segmentation and Loan Characteristics
Loss Curves
Prime Loss Curves
Subprime/Nonprime Loss Curves
Why We Look at Loss Curves
Structures
Typical Auto Loan Structures
Cash Flow
Sequential Payments
Pro Rata Payments
Cash Reserve Accounts
Structure Standardization
Alternative Structures
Prefunding Structures
Soft Bullet Structures
Credit Enhancement
Credit Enhancement Varieties
Rating Agency Credit Enhancement Requirements
Other Risk Factors
Servicing Risk
Seller/Servicer Financial Stability and Access to Liquidity
Servicing Intensity of Collateral
Third-Party Servicing, If Necessary
Underwriting and Collections Risks
Delinquency and Loss History
New Versus Used Mix
Minimum, Maximum, Average Loan Balance
Seasoning, Weighted Average Maturity, and Mix of Contracts
Geographic Diversity
Other Information
Payment Speeds
Prime Auto Speeds
Subprime and Nonprime Auto Speeds
To Call or Not To Call — Auto ABSs’ Early Call Op
Other Auto ABS Products
Dealer Floor-Plan Loans
Definition
Structures
Credit Enhancement
Dealer Floor-Plan Credit Losses
Contingent Recourse in Dealer Floor-Plan Structures
Manufacturers Buyback Obligations — A Residual Va
Manufacturer Debt — Staggered Maturities
Fleet Financing for Auto Rental Companies
Credit Enhancement
Manufacturer Contingencies
Auto Leases
Risks and Structure
Auto Leasing Residual Value
Lease Vehicle Turn-Ins
Auto Lease Credit Losses
Leasing Losses Frequency and Severity
Auto Leasing Structure
Pension Benefit Guaranty Corporation Risks to Lease Transactions
General Motors Novel Structure Eliminates PBGC Risk
Vicarious Tort — No Longer a Risk
Appendix
List of Prime, Nonprime, and Subprime Lenders
