Subprime auto defaults on path toward 2008 crisis levels, say portfolio managers

Brittney Van Calcar News

May 6, 2023 at 11:16 a.m. ET

The surge in easy credit during the pandemic, government stimulus payments, and skyrocketing car prices have all begun to bite borrowers with the lowest credit scores.

Subprime borrowers who financed used cars at record prices in recent years have been acting more stressed than during the 2008 global financial crisis, even though the labor market has been resilient, according to a new report from fixed-income asset manager Bramshill Investments.

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