The overall performance of the auto loan and auto lease asset-backed securities (ABS) market in Europe, the Middle East and Africa remained stable during the three-month period ended November 2016, according to the latest indices published by Moody’s Investors Service.
The 60-plus day delinquency for overall index remained stable at 0.33 percent in the three months ended November 2016. Cumulative defaults decreased to 0.75 percent in November 2016 from 0.80 percent in August 2016. Cumulative losses decreased to 0.36 percent in November 2016 from 0.38 percent in August 2016.
The prepayment rate for overall index decreased to 13.16 percent in November 2016 from 14.74 percent in August 2016. Reduction in 60-plus day delinquency, cumulative defaults and in cumulative losses are mainly explained by change in the index composition, starting from May 2016 newly closed deals were eligible to be included to the index and they had a dilution effect on index trend line. New deals are included to the index when they pass one-year period since closing.
As of November 2016, the pool balance of all outstanding rated auto ABS transactions was on its highest historical level, €46.8 billion, constituting a year-over-year increase of 31.1 percent. This increase is mainly driven by recent issuance of captive deals.

Source: Arab News