Some 20 auto ABS have hit the market thus far in January, continuing momentum from a strong 2025. Meanwhile, the outlook for collateral performance is negative, though credit ratings are expected to hold.

In a first-of-its kind ruling, a bankruptcy court ordered a 2021 whole-business securitization from Hooters Restaurant Group to be cancelled and essentially re-issued.

Losses on auto loan ABS are near record levels. Still, there are pockets of opportunity for savvy investors.