 Dieselgate and its expected consequences on the European auto ABS marketBritta Hachenberg, Florian Kiesel and Dirk Schiereck Economics Letters, 2018, vol. 171, issue C, 180-182 Abstract: Along with the ‘Dieselgate’ scandal more and more consumers in continental Europe are expected to decide no longer to buy a new car but to lease it to transfer reselling risk to the leasing company. This change in behavior can have consequences for refinancing loan and lease contracts via auto asset-backed securities (ABS) transactions, especially in Europe. We empirically analyze auto ABS in Europe and the U.S. with a focus on loan and lease transactions. We find that the European market did not differentiate between loan and lease contracts as collateral for ABS, while the U.S. market significantly preferred prime loans over lease contracts. If leasing becomes more common in Europe, too, we expect that investors will react more sensitively to changes in the composition of auto ABS and require higher yields resulting in worse refinancing conditions for European ABS. Keywords: Dieselgate; Securitization; Asset-backed securities (ABS); Structured products (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:171:y:2018:i:c:p:180-182 DOI: 10.1016/j.econlet.2018.07.044 Access Statistics for this article Economics Letters is currently edited by Economics Letters Editorial Office More articles in Economics Letters from Elsevier |
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