The latest installment of the dv01 Origination Report is now available. Because there were relatively few auto securitizations in August and early September, it is hard to provide definitive insights on recent origination trends. As a result, dv01 will not provide commentary on the Subprime Auto market in this report and will resume commentary next month.
September originations declined in-line with historical trends. While it does not erase the growth slowdown seen in March-July 2022, the return to historical behavior is a positive signal that recent market stress is no longer weighing as heavily on new originations.
Originations by income rose $4,000 (3.6%) MoM, the largest increase since April 2020. On a longer-term horizon, incomes in September were 12% higher than at the end of 2020—just below the rate of inflation.
GWACs rose 27 bps MoM in Top Grades originations, 60 bps in Middle Grades, and a whopping 140 bps in Bottom Grades.
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