SFA Market Snapshot – May 4, 2023

Amid continued muted issuance across the securitized space, credit risk spreads and trading volumes stabilized throughout April as the market incorporated banking turmoil news. Auto ABS performance is under scrutiny with delinquencies and losses in subprime auto loan ABS still elevated. Structural protections have helped this asset class weather credit challenges during times of economic distress. To the extent that credit conditions worsen, we would expect auto ABS structures to, by and large, continue to exhibit resiliency.  Read more.