What is subprime auto asset-backed securities?

Hermina Ketring: Subprime Auto Asset-Backed Securities* are securities issued in respect of 'Subprime' borrowers who will typically have lower incomes, tainted credited histories, or both.------------------------*Auto Asset-backed securities(ABS) 1. Auto finance companies issue securities backed by underlying pools of auto-related loans. Auto 2. Auto Asset-backed securities(ABS) are classified into three categories: -prime, -nonprime, and -subprime: i. Prime auto ABS are collaterized by loans made to borrowers with strong credit histories. ii. Nonprime auto ABS consist of loans made to lesser credit quality consumers, which may have higher cumulative losses.iii. 'Subprime' borrowers will typically have lower incomes, tainted credited histories, or both.3. For details, please read at:http://en.wikipedia.org/wiki/Asset-backed_security.......Show more