Que sera, sera; what will be, will be. While it may be true, yielding to that platitude is a terrible way to create a successful future. Instead, we say, “what will be, will be what you expect…if you are prepared.”
Joseph Cioffi was interviewed for the WNYC Radio Morning Edition program, "The Other Subprime Debt Problem."
Joseph Cioffi was quoted in a Financial Times article, "Yield-Crazed Investors Pile Into US Subprime Car Loans."
Momentum changes everything – it’s hidden, but you know it when you feel it. It has the power to shift markets, so if you find where it’s headed, best to get there first. As we near year end, we’ve identified clues as to where momentum will take subprime auto in 2020, and in subprime auto, the 2019 numbers tell the story.
S&P’s recent downgrade of Class E notes from CPS Auto Receivables Trust (CPSART) 2016-B, 2016-C, 2016-D and 2017-A from BB- to B+ is prompting investors to take a closer look at other deals. It also prompted us to go back over the data from our 360 degree market study to see which constituency group will be most sensitive to the latest news.
Originations and Issuances, by the Numbers Total auto loan debt increased to $1.30 trillion in Q2 2019, up from last year’s $1.24 trillion, and accounted for 9.4% of the $13.86 trillion in national household debt – greater than credit card debt, but less than student loan and mortgage debt, according to Federal Reserve Bank of New York data.
The phrase “winter is coming” was more than just a motto to House Stark in “Game of Thrones.” It was both a warning and a call to vigilance – the honor in readiness and preparation that was the key to victory. Subprime ABS participants should heed that call. With uncertainty swirling about the economy, even the most sure-footed optimist should be concerned for what lies beyond the seemingly safe...
