Dieselgate and its expected consequences on the European auto ABS market

D. Schiereck, B. Hachenberg and F. Kiesel

Publications of Darmstadt Technical University, Institute for Business Studies (BWL) from Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL)

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.

Date: 2018-08-31
New Economics Papers: this item is included in nep-tre
Note: for complete metadata visit http://tubiblio.ulb.tu-darmstadt.de/106637/
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in Economics Letters (2018-08-31) : pp. 180-182

Downloads: (external link)
https://doi.org/10.1016/j.econlet.2018.07.044

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dar:wpaper:106637

Access Statistics for this paper

More papers in Publications of Darmstadt Technical University, Institute for Business Studies (BWL) from Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL) Contact information at EDIRC.
Bibliographic data for series maintained by Dekanatssekretariat ().