Securities backed by auto loans falter

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NEW YORK (CNNMoney.com) -- The credit crisis appears to be spreading beyond the housing market into the market for auto loans, according to a report released Thursday.

Delinquencies of more than 60 days in securities backed by auto loans surged in January, according to Fitch Ratings service.

Delinquencies among assets backed by prime auto loans hit a 10-year high in January. The number of delinquencies in assets backed by subprime auto loans jumped 10% from December and 43% from a year earlier.

The rising delinquency level in securities backed by auto loans follows in the footsteps of deteriorating bonds backed by subprime home loans, which have plagued credit markets worldwide since last year.

However, investments backed by auto loans make up a relatively small portion of the market for asset-backed securities.

Still, weakness in bonds backed by auto loans reflects the problems that consumers are having as the U.S. economy slows.

Overall, the outlook for the sector does not appear to be improving, a Fitch spokesman said.

"There appears to be few positive factors present that can potentially slow the recent weakening trend in delinquency and loss performance in coming months," said Fitch Director Hylton Heard, in a statement.