I am a finance employee at a financial institution, specializing in originating auto loans in a country where auto loans have only been available for 2 years. My group has just been informed that a close competitor has secularized $150 million in auto loans through an investment bank.

My boss wants to understand why the competitor did this. Explain.

He also wants to understand the potential benefits for the following:

The issuer

The investors buying the ABS

The individual borrowers seeking auto loans

He also wants to know the likely impact to the auto loan market in this country if a large, liquid ABS market emerges over the next few years.

At least a thousand words and two credible sources