IP InterviewPublished November 7, 2024
Carvana vs CarMax: ABS Ratings
inpractise.com/articles/carvana-vs-carmax-abs-ratings
Executive Bio
Former Senior Executive at Moody's Investors Service
Interview Transcript
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Please share whatever you feel is important for me to understand regarding the metrics you focus on and your weightings when analyzing the ABS pools. Help me understand this.
The most important statistic for Moody's and other rating agencies is CNL, or cumulative net losses. In Carvana's case, and for any issuer we rate, they provide vintage or cohort CNL data going back as long as possible, usually three or more years. We use this data for analysis, starting with an extrapolation exercise from historical CNL curves.
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