This webinar will provide expert insight and trend analysis of U.S. automobile lending in the age of COVID-19.
Join John Toohig, Head of Whole Loan Trading at Raymond James, and Michael Brisson, Senior Economist at Moody's Analytics for a candid conversation covering:
• Comparing the expected portfolio hit from COVID-19 to the Great Recession
• The impact of payment deferrals/forbearance
• Performance across various credit bands
• New or used vehicle values and supply
• New origination estimates for the remainder of 2020 and beyond
• Direct vs indirect lending
Auto retention values were not immune to the slowdown in the U.S. economy in the third quarter. Wholesale used-vehicle value retention dropped 1.7% in September on a year-over year basis. This at a time when U.S. economic growth slowed from 3% a year earlier to about 2%
The importance of accurate and timely data on household credit conditions became clear during the global financial crisis. Quickly rising delinquencies and foreclosures should have been a warning to lenders and regulators to significantly tighten the spigot on new lending that was wide open during the pre-crisis boom. However, partially due to data limitations, many financial institutions were surprised by the weakening of household balance sheets. By the time they realized the severity of the problem, it was too late to act.
Listen as Anamaria Pieschacon and Michael Brisson a discuss effective approaches for validating consumer credit risk models.
With auto leasing close to record highs, the need for accurate and transparent used-car price forecasts is paramount. Concerns about the effect of off-lease volume on prices have recently peaked, and those exposed to risks associated with vehicle valuations are seeking new forms of intelligence. With these forces in mind, Moody's Analytics AutoCycle™ has been developed to address these evolving market dynamics.