US sub-prime auto lending raises concerns

New York

THE loans were for used Dodges, Nissans and Chevrolets, many with tens of thousands of kilometres on the odometer, some more than a decade old. They were also one of the hottest investments around.

So many asset managers clamoured for a piece of a September bond deal made up of these loans that the size of the offering was increased 35 per cent, to US$1.35 billion. Even then, Santander Consumer USA received more than US$1 billion in investor demand that it could not accommodate.