Tidewater tests subprime appetite

摘要

Tidewater finance company will soon test appetite for a deeply subprime auto ABS after rolling out a US$156m deal on Wednesday, its first asset-backed trade since 2014. The subprime lender, which focuses on recently bankrupt borrowers, has picked a tough time to tap what remains an unsteady market. Fears of a US recession - and a broad sell-off in credit - will create challenges for sole lead BB&T Capital Markets as it seeks to sell what is considered a risky and illiquid asset. "In a risk-off environment, subordinated bond spreads have felt the brunt of investor caution, especially in subprime autos," wrote John McElravey, a Wells Fargo analyst.