...Solid 2Q Prime Sector: Despite some softening in used vehicle values, asset performance in 2Q remained solid, although loss rates drifted slightly higher compared with 2Q14. Pressure Ahead for Subprime: 2Q delinquencies and losses were both increased from 2Q14. Subprime asset performance is expected to soften further for the remainder of the year. Weaker credit quality in 2013¡ 2014 pools and lower used vehicle values will push losses higher. Ratings Performance Solid in 2015: Prime upgrades issued are in line with those issued in 2014. Sector rating outlooks are positive for prime and stable for subprime ABS. Loan Term a Focus in 2015: Lenders continued to drive volumes on extended loan terms beyond 72 months and up to 96 months. This is a trend Fitch Ratings is watching closely. Longer loan terms lead to higher loss severity and losses. Regulatory Investigations Evolving: Several recent high profile cases in 2015 have been settled, including Consumer Financial Protection Bureau settlements....
