Based on my experience, and rather ironically, good times are more perilous than bad..
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| A SQUARE :: 01Apr08 Investing in non-prime auto paper |
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Category
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Speciality Finance
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Faculty
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Nicholas Levenstein
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Expertise
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Non-prime auto paper
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Author
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Sona Blessing
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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.
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