Sales of the Riskiest Subprime Auto Bonds Are Headed for a Record Year

Sales of the riskiest subprime auto bonds are on pace for a record year, according to Barclays Plc.

Companies have sold more than $150 million of B rated subprime auto ABS bonds this year, compared with nothing last year, and an annual average of about $20 million since the financial crisis, Barclays analyst Alin Florea wrote in a recent note. Meanwhile, BB rated debt in the sector has already exceeded $500 million and looks set to pass last year’s total of $950 million.