A SQUARE :: 01Apr08 Investing in non-prime auto paper
Non-prime auto paper
In the non-prime auto loan space, I believe the challenges and opportunities are very similar in both during economic downturns and prosperous times. Irrespective, the default rate seems to hover around 25 – 26% for the very worst credit categories. For a speciality finance company such as ours, thorough due diligence in credit underwriting and collections is imperative - more than macro economic factors.