Auto execs speak out to defend subprime credits

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By Matthew Scully
28 Jul 2014

Subprime auto executives are pushing back against a wave of negative reports that they say inaccurately draws parallels between their lending practices and those in the pre-crisis US subprime mortgage business. The fightback comes as at least two smaller auto financiers plan new asset-backed securities.

There are a few bad lenders in the market, and they’re creating bad press for everybody, said Jim Landy, president of CarFinance, when asked about the recent negative press. CarFinance is selling a $230.5m securitization of subprime auto loans this week.

“Folks are bubble hunting,” Landy told ...

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