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Investing in non-prime auto paper

Tuesday, April 01, 2008
Based on my experience, and rather ironically, good times are more perilous than bad..

A SQUARE :: 01Apr08 Investing in non-prime auto paper
Category Speciality Finance
Faculty Nicholas Levenstein
Expertise Non-prime auto paper
Author Sona Blessing
Faculty Name
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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