A report from Moody's Investors Service has warned that the performance of Australian auto asset-backed securities deteriorated in Q1 2015, with 30-plus day delinquencies increasing to 1.3 per cent in March 2015, up from 1.0 per cent in December 2014.
However, such an increase in missed payments is typical following the end-of-year holiday season, Moody's noted.
The highest weighted-average 30-plus day delinquency rate recorded was by Liberty Financial, with its rate at 7.3 per cent for the March 2015 quarter, up from 6.4 per cent for December 2014. The Liberty ABS transactions include non-conforming loans in their pools and exhibit higher delinquency rates than other securitisation programs, and Moody's said this performance was "within expectations".
Rates for 1Q 2015 weighted-average 30-plus day delinquency rates for other regular issuers, as reported by Moody's, moved as follows:
- Capital Finance Australia's Bella transactions: increased to 3.4 per cent in March 2015, from 2.3 per cent in December 2014,
- BOQ Equipment Finance's REDS transactions: 1.3 per cent, from 0.7 per cent,
- Macquarie Leasing's SMART transactions: 0.9 per cent, up from 0.7 per cent, and
- St George Bank's Crusade program: 1.7 per cent for two successive quarters.
The year-to-date issuance, as rated by Moody's, reached A$1.6 billion, as at 31 March 2015, compared to A$600 million issued in 1Q 2014. Pools of car loans account for more than 90 per cent of the asset-backed securitisations rated by Moody's.