Car loans zooming into sub-prime trouble; but financial crisis not likely

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.