How Subprime Auto Loans Could Affect The U.S. Economy
The phrase "subprime loans" may elicit a bit of concern, as their presence as part of asset-backed security derivatives received some of the blame for contributing to the housing boom and bust that led to the Great Recession. Now analysts are seeing that 2019 subprime auto loans are on the way to driving past the 2018 record of $32 billion.
Why are investors so interested in that kind of auto loan, and could there be a negative impact on the U.S. economy around the corner?
Jennifer Thomas is senior consumer asset-backed securities analyst at Boston-based Loomis Sayles & Company.
She spoke to The Show about regulations imposed on subprime lending after the Great Recession and whether those applied only to mortgage-related loans.