4 ms·
Auto loans are looking interesting, too. * $1.27T of outstanding debt. * Subprime share of that fell to 22% but because so many loans are being created, total
by kaycebasques 8y ago
Auto loans are looking interesting, too.
* $1.27T of outstanding debt.
* Subprime share of that fell to 22% but because so many loans are being created, total number of subprime borrowers (SBPs) is now at all-time highs.
* 8% of SBPs are seriously delinquent. Cycle low was 6% in 2012. Peaked at 10% in 2010.
* Increasing share of prime loans is offsetting the deteriorating SBP picture.
* “Although rising overall delinquency rates remain below 2010 peak levels, there were over 7 million Americans with auto loans that were 90 or more days delinquent at the end of 2018. That is more than a million more troubled borrowers than there had been at the end of 2010 when the overall delinquency rates were at their worst since auto loans are now more prevalent. The substantial and growing number of distressed borrowers suggests that not all Americans have benefitted from the strong labor market and warrants continued monitoring and analysis of this sector.”
https://libertystreeteconomics.newyorkfed.org/2019/02/just-released-auto-loans-in-high-gear.html https://libertystreeteconomics.newyorkfed.org/2019/02/just-r...