There are signs of trouble ahead for the subprime auto ABS sector that warrant closer attention to the financial health of that class of borrowers, but it looks like the rising risk is contained, according to some research reports published this week by a pair of Wall Street analysts. In one of the reports, Wells Fargo Securities analysts John McElravey and Ryan Brinkoetter warned of the implications for the fiscal soundness of the borrowers involved. They reviewed the total and voluntary prepayment rates of the major subprime auto ABS issuers, and calculated the average prepayment curves by deal age for issuer and vintage over the 2013-2016 time period. “Much of the analytical focus in auto ABS has been...