Wednesday, October 1, 2014

Kate Kelly — New debt crisis fear: Subprime auto loans

Booming U.S. car sales and a push by private equity investors are creating a renaissance in the market for auto loan-backed securities. Corporations like AppleGoogle and 3M as well as institutional and insurance-industry investors have been looking for the promise of steady yields in exchange for limited risk. 
But a panoply of investigations into lending practices for so-called subprime, or riskier, borrowers, coupled with concerns about the exits of some auto-finance company investors, have some market observers warning that trouble could lie ahead.
So soon again?

CNBC
New debt crisis fear: Subprime auto loans
Kate Kelly

1 comment:

Ralph Musgrave said...

As long as governments continue to bail out banks that make silly loans, what else should we expect? If you can 1, take a big risk, 2 keep the winnings when it pays off, and 3 send the bill to Uncle Sam when it doesn't, then go for it. That's my advice.