Sub-Prime Auto Market

Hello all,

I raise capital for a fund in an unrelated space but I have been more and more interested in researching the sub-prime auto market for a short on our own capital for some time. My question lies in finding data to research and I was hoping to gain some assistance from underwriters and credit analysts. I already know what stocks to play on the short side that are heavily involved in the subprime space, my question is geared towards more finding data which we can evaluate the impact. I was told Experian could be a good start but I am hoping you guys know which other data providers would be a better resource to find such information. Thanks.

8 Comments
 

Hard thing about Subprime auto is the deals are 144a so loan level information is not available, they are run via rep lines. Public issuers like ally and santander have to show data starting this year due to regAB, can see those data tapes. But for others in terms of performance data, if you have Intex that's the best place to see speeds and losses. Expensive software though.

 

Thank you. A buddy of mine was saying similar that I should start with SC and ALLY financials and reporting. I will check out Intex as well.

 
Best Response

Check out Credit Acceptance Corp's Auto Loan trust, most recently 2017-1 and 2017-2 ratings reviews by S&Poors. You can do a google and pull up a pdf of them. $CACC is a pretty ridiculous company actually, if you dig deep. Member of the board runs a hedge fund in Florida and is literally squeezing out the shorts like crazy right now. roughly 75% institutional holding, majority is this guys fund.

 

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