by Robin Wigglesworth at Financial Times
David Stockman’s Contra Corner
Delinquencies on poor-quality US car loans have climbed to their highest level in almost two decades, according to Fitch Ratings, reinforcing concerns over the rapidly growing market.
The rate of “subprime” motor loans overdue by more than 60 days rose to 5.16 per cent in February. This surpassed the post-financial crisis peak and was the highest since the 5.96 per cent reading in October 1996, according to the rating agency.
Subprime car loans have long been a concern for analysts, some of whom feared that rapid issuance since the crisis and weakening lending standards would cause problems in the market for securitised motor loans.