Chapter 7
Dealer Floor Plan Loans
The next two chapters discuss how revolving lines of credit are securitized. The receivables that fall into this category comprise a large segment of the asset-backed markets and include dealer floor plan loans, also referred to as wholesale motor-vehicle loans, and credit card receivables (the subject of Chapter 8), as well as home equity lines of credit and trade receivables.
TRENDS IN WHOLESALE AUTOMOBILE CREDIT SECURITIZATION
To understand the trend of securitization in the sphere of wholesale automobile credit, consider Exhibit 7.1, which illustrates the ratio of business wholesale motor vehicle loans owned by finance companies over this same category of loan that have been securitized by finance companies. ...
Get The Securitization Markets Handbook: Structures and Dynamics of Mortgage- and Asset-backed Securities, 2nd Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
