Auto Subprime Trend Worsens, UBS and Morgan Stanley Warn

The trend in auto subprime loan area is worsening, two nearly identical reports from UBS and Morgan Stanley say. Defaults from undesirables are mounting as the loan standards have been loosened to 2008 housing crisis levels, an issue that has been documented in ValueWalk on several occasions. That trend has populist roots and is gaining strength and momentum signals point to potential downside deviation in the offing.

It is income inequality driven by central bank policy that is driving auto subprime crisis, says UBS

For all the talk of low unemployment and a great economy that is working for all...