Employee at a financial institution

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Reference no: EM13820033

You are a finance employee at a financial institution, specializing in originating auto loans in a country where auto loans have only been available for 2 years. Your group has just been informed that a close competitor has securitized $150 million in auto loans through an investment bank.

  • Your boss wants to understand why the competitor did this. Explain.
  • He also wants to understand the potential benefits for the following:
    • the issuer
    • the investors buying the ABS
    • the individual borrowers seeking auto loans
  • He also wants to know the likely impact to the auto loan market in this country if a large, liquid ABS market emerges over the next few years.

Reference no: EM13820033

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