- Those most at risk are subprime-focused lenders, says Height Securites' Edwin Groshans, noting a FRBNY report showing auto loans continuing to grow and subprime delinquencies pointing to signs of distress.
- The National Auto Dealers Association November update showed continuing acceleration in used car price depreciation.
- Ally Financial (ALLY flat), for one, has been increasing subprime loans held on its balance sheet, and reported a Q3 increase in net charge-offs due in part to lower recovery rates on repossessed autos.
- Others of note: Credit Acceptance (CACC -0.5%), Santander Consumer (SC -0.6%), Capital One (COF -0.6%)
- Source: Bloomberg