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Auto finance loan market chatter around auto finance loan
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Market chatter around auto finance loan portfolios highlights risk hedging via interest rate swaps, stabilizing net interest margins. This finance structuring has been positively noted in equity research updates, supporting stronger buy-side confidence in medium-term share price appreciation. You can generally refinance a car after the title is transferred to the current lender. This process typically takes 60 to 90 days. However, you might benefit from waiting at least six months to refinance your auto loan. Subprime auto loans — loans for borrowers with bad credit or no credit history to help them buy a car — are big business in the U.S. According to Kelley Blue Book, citing Cox Automotive data, subprime loans accounted for 13.6% of auto loans issued in August. (1) Bloomberg estimates the subprime auto market to be worth $80 billion to investors. (2) Shares of top-listed auto finance loan companies remain volatile as bond market shifts impact funding costs. However, higher-yield loan products have offset margin pressure, leading some analysts to model double-digit EPS growth in the next two quarters. Traders eye support levels closely here.