Credit Protection Reaches Weakest Level In Recorded History

At the end of 2017, credit rating agency Moody’s warned that despite the improving US economy, 2018 would be a challenging year for borrowers and lenders particularly for auto and student loan credit as interest rates tick higher. Specifically, the report noted that “although the likely continuation of the US economic expansion for a ninth year will offer support for the collateral performance of consumer asset-backed securities (ABS) in 2018, some pockets of borrowers have been experiencing growing financial strains while underwriting in many consumer lending categories has loosened.” It continued, “many Americans are grappling with higher expenses on a…