European Auto ABS: UK Portfolios Transition to Alternatively Fueled Vehicles

This is the first in a series of commentaries that discusses the transition towards alternatively fueled vehicles and the relevance for auto asset-backed securities (ABS). This commentary focuses exclusively on the United Kingdom. DBRS Morningstar reviewed recent vehicle fuel type-related trends in the auto ABS market and discusses their impact on transactions backed by auto loans and auto leases, including:

-- UK market trends,
-- Relevance for auto ABS, and
-- Recent portfolio compositions.

DBRS Morningstar expects the collateral supporting receivables in auto ABS transactions it rates to continue shifting towards alternatively fueled vehicles.