BMO: No Need To Worry About Auto Defaults

Rising auto loan default rates have captivated Wall Street’s attention this year with some analysts branding Auto Defaults short as the next ‘Big Short’. However, while the rest of the Street seems to be worried about the brewing problems in auto credit, analysts at BMO Capital Markets believe these concerns are overblown and auto lender equity underperformance has created a buying opportunity. In a research note published at the beginning of this week, analysts at BMO layout the case as to why they’ve reached this conclusion and the case is based on used car prices. Auto Loan Subprime Defaults Hit…