NEW YORK -

It’s been a predictable spring for the U.S. auto loan asset-backed securities (ABS) market, and S&P Global Ratings said that’s been a good thing.

It was so good, in fact, that one subprime-specific metric made a positive move for the first time in six months.

According to the firm’s latest report, S&P Global Ratings highlighted the prime and subprime sectors continued to benefit from seasonal factors in April. Analysts indicated improvement was reflected in losses declining on a month-over-month basis, “which is a common trend each spring.”

Additionally, S&P Global Ratings pointed out delinquencies for the prime sector remained stable and improved for the subprime sector.

The report mentioned prime and subprime month-over-month losses narrowed to 0.54 percent and 6.43 percent in April from 0.68 percent and 7.62 percent in March, respectively, and year-over-year, from 0.61 percent and 7.04 percent, respectively.

Analysts highlighted this movement is the first time that subprime losses have declined year-over-year since November.

S&P Global Ratings found that the prime recovery rate increased month-over-month to 65.69 percent in April from 58.74 percent in March and year-over-year from 62.17 percent in April 2017.

Subprime recoveries were stable month over month at 47.37 percent in April compared to 47.46 percent in March, and rose from 44.73 percent in April of last year.

“In our opinion, this spring rebound in recoveries contributed to the decline in year-over-year losses,” analysts said.

The report went on to state the prime sector 60-plus-day delinquency rate remained relatively stable at 0.40 percent in April compared to 0.38 percent in March and 0.42 percent in April of last year.

The subprime sector 60-plus-day delinquency rate fell to 4.01 percent in April from 4.28 percent in March and 4.25 percent in April 2017.

S&P Global Ratings closed by noting the firm in May revised expected cumulative loss range for several participants, including some with subprime exposure:

— CarNow Auto Receivables Trust 2016-1
— CarFinance Capital Auto Trust 2013-3
— World Omni Auto Receivables Trust 2016-B
— Westlake Automobile Receivables Trust
— TCF Auto Receivables Owner Trust
— Flagship Credit Auto Trust
— CPS Auto Receivables Trust
— DT Auto Owner Trust