07-19-2014, 04:56 PM
It seems to me that this is a trend worth keeping an eye on.
http://dealbook.nytimes.com/2014/07/19/i...f=business
http://blogs.wsj.com/moneybeat/2014/06/2...an-market/
I've seen WFC flagged as the biggest mover in the subprime car loan business. It makes me want to allocate my funds to USB instead, since it has a nearly sterling reputation and record, but unfortunately the second article identifies both of them.
Presumably it's driven by the demand for yield, and thus if interest rates rise, maybe the pressure to lend subprime will fizzle out. Not sure what the consequences of all this will be, or if it will matter at all.
http://dealbook.nytimes.com/2014/07/19/i...f=business
http://blogs.wsj.com/moneybeat/2014/06/2...an-market/
I've seen WFC flagged as the biggest mover in the subprime car loan business. It makes me want to allocate my funds to USB instead, since it has a nearly sterling reputation and record, but unfortunately the second article identifies both of them.
Presumably it's driven by the demand for yield, and thus if interest rates rise, maybe the pressure to lend subprime will fizzle out. Not sure what the consequences of all this will be, or if it will matter at all.