Subprime Lender Tricolor’s Bonds Drop After Report of Furloughs

Bonds sold by Texas-based Tricolor Holdings LLC, which provides subprime auto loans, are trading lower this week after a report saying that the company has furloughed most of its staff.

One of the company’s asset-backed securities traded at 75 cents on the dollar on Monday, after having changed hands at around 100 cents in late July, according to data provider Trace. The bond has a BB grade from S&P Global Ratings.