Subprime Auto Bonds From 2015 May End Up Worst Ever, Fitch Says
Customers shop for used vehicles displayed for sale outside of a CarMax Inc. dealership in Burbank, California, U.S., on Tuesday, June 17, 2014. CarMax Inc. is scheduled to release earnings figures on June 20.
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
Subprime auto bonds issued in 2015 are by one key measure on track to become the worst performing in the history of car-loan securitizations, according to Fitch Ratings.
This group of securities is experiencing cumulative net losses at a rate projected to reach 15 percent, which is higher even than for bonds in the 2007, Fitch analysts Hylton Heard and John Bella Jr. wrote in a report Thursday.