Subprime Auto Loans Reach New Highs
Remember the billions of dollars of poorly-vetted mortgage-backed securities (MBS) that helped destroy Lehman Brothers and numerous banks (not to mention the world economy) in 2008? This time it’s auto loan-backed securities (ABS) that are setting records. According to Bloomberg Businessweek, $26 billion in subprime ABS bonds were sold in 2016, surpassing the peak reached…
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