Auto Loans: A Subprime Market Grows in the Shadows


Robinson, Matt, Sarah Mulholland y Jody Shenn [2014], “Auto Loans: A Subprime Market Grows in the Shadows”, Business Week, New York, 02 de octubre,

Business Week
Fecha de publicación: 
Jueves, Octubre 2, 2014
Idea principal: 

The housing crisis laid bare an epidemic of fraud and sloppy paperwork on loans made to home buyers with spotty credit. Investors who purchased bonds backed by those loans suffered drastic losses. Six years later, investors are snapping up a new crop of subprime bonds, this one backed by auto loans. Ratings companies are awarding the bonds top grades, and buyers have almost no way to determine the accuracy of the information they get about them. Wall Street sold $17.7 billion of the bonds this year through Sep 26, a pace that would make 2014 the busiest year since 2006, according to Barclays. Subprime auto payments more than 60 days late climbed to 3.6% of the debt outstanding in July, from 3% the year before, Standard & Poor's said in a Sep 18 report.