Auto ABS Sees Unexpected Shift in Funding Costs

As Auto Finance News noted on July 29, the cost of funds in Auto ABS should be increasing, with the increasing risk of a recession, and had been through prior weeks. But tightening spreads over the last two weeks might tell a more optimistic story in the market, tracking with the uptick in equity markets over the same period. For the future, “whether two weeks make a trend remains to be seen.”

Read more.