Steve Eisman, the Neuberger Berman Group fund manager who featured in Michael Lewis’s book “The Big Short,” said he’s concerned about the U.S. subprime-auto market, even though credit quality across the banking system has improved significantly.
“Banks make mistakes on credit quality and we are in an environment where credit quality has never been this good in anyone’s lifetime, with the one exception of subprime auto,” Eisman said in a Bloomberg TV interview on Friday. He added, though, that it’s not a big enough asset class to cause problems for the financial system as a whole.