Here's One Sign of Trouble in the Subprime Auto Lending Market

Subprime auto lending has attracted a lot of attention in recent years. New data out this month may show why regulators and investors remain concerned.

Losses on car loans taken out by bad-credit borrowers are continuing to climb, thanks in part to the flood of rookie auto finance companies that have entered the market in recent years. You can see the rise in subprime borrowers struggling to make car payments in monthly data on bond deals sold on Wall Street. So-called subprime auto asset-backed securities (ABS) bundle together car loans and then sell them to big investors.