Our market commentary in February 2013 pointed out that the below-prime automobile finance sector attracted strong investor interest in the 2011 – 2012 post-recession credit recovery. We also expressed our opinion that the key risk in the sector was over-funding, which could cause credit underwriting and risk pricing standards to deteriorate. We recently attended the National Automobile Finance Association (NAFA) conference in late May and have had continued conversations with industry insiders over the past several weeks.