Subprime Auto Has ‘Credit Issues,’ Top ABS Analyst at BofA Says
- Chris Flanagan made the comments in a June 9 research note
- Ratings agencies, regulators are concerned about car debt
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There may be trouble ahead for the debt fueling America’s car addiction.
Securities backed by certain auto loans have “some real fundamental credit issues,” according to Chris Flanagan, a top-ranked analyst who specializes in structured finance at Bank of America Corp. The dangers lurk in subprime deals and in bonds supported by car rentals, Flanagan wrote in a note dated June 9. By contrast, the rest of the U.S. economy appears to be on strong footing, with the recovery intact, he said.