medium · Asset-Backed Securities

In a 'Static Pool' analysis for Auto ABS, which of the following patterns would most likely indicate a deteriorating underwriting standard by the originator?

1. A more recent vintage shows a loss curve that is steeper and peaks earlier than older vintages.
2. The weighted average FICO score of the pool has remained essentially constant at around 720.
3. The ABS% prepayment speed has increased modestly from about 1.2% to 1.8% recently.
4. The pool factor is declining somewhat faster than the originally scheduled amortization curve implies.

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