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Car loans zooming into sub-prime trouble; but financial crisis not likely
For investors, the allure of sub-prime car loans is clear as the securities composed of such debt can offer 5% yields
Add BT as a preferred sourcePublished Mon, Jul 17, 2017 · 09:50 PM
New York
IT'S classic sub-prime: hasty loans, rapid defaults and, at times, outright fraud. Only this isn't the US housing market circa 2007. It's the US auto industry circa 2017.
A decade after the mortgage debacle, the financial industry has embraced another type of sub-prime debt: auto loans. And, like last time, the risks are spreading as they're bundled into securities for investors worldwide.
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