The Lender of Subprime Auto Loans Could Become The Problem

There is a problem for investors reminiscent of the 2008 housing crisis, lawyer Joe Cioffi warns. After studying the securitization surrounding subprime auto loans a risky situation may be about to come to a head, one not entirely focused on the borrower. This time Cioffi is warning about who is doing most of the risky lending. As defaults rise, the focus on who is doing subprime auto loans is a concern Subprime auto debt is rising along with what is typically a negatively correlated statistic – defaults. While most debt issuance had remained steady, the New York Federal Reserve notes…