Carmageddon: Deep Subprime Auto Delinquencies Spike To 10-Year Highs

Thursday, August 17, 2017
By Paul Martin

by Tyler Durden
Aug 17, 2017

If you’re still on the fence about whether the auto market in this country is anything but a massive bubble being propped up by extremely loose credit underwriting standards, then we think Equifax has just provided some definitive evidence that just might push you over the edge.

In discussing delinquency trends in deep subprime auto ABS deals, Equifax Chief Economist Amy Crews Cutts recently pointed out that 2016 and 2017 vintage deals are mysteriously performing more like 2007 securitizations than those underwritten in 2010.

Here’s more from Bloomberg:

“Performance of recent deep subprime vintages is awful,” Equifax said in a slide show on second-quarter credit trends.

“We’re seeing an increase in delinquencies across all credit scores, but in the highest credit quality, it’s just a basis point or two,” Chief Economist Amy Crews Cutts said in an email Tuesday. “In deep subprime, the rise is more substantial. What stood out to me was the issuers. Those that have been doing this for a decade or more were showing the ‘better’ performance, while those that were relative newcomers were in the ‘worse’ category.”

The Rest…HERE

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