Joseph Cioffi contributes to Blueshift Research’s report featuring an in-depth look into subprime auto loans from a diverse range of industry perspectives, including, new and used car dealerships, repossessors and finance companies. Regarding the inevitable comparison to subprime mortgage lending, Joseph notes, “Large financial institutions were making large bets in that market. It was a widespread phenomenon. The subprime auto loan market may become a very large problem for a more contained market. It doesn’t carry the systemic risk of the subprime bubble.” Click here to view the full article.
Joseph Cioffi contributes his insights to this American Banker article that provides perspectives from industry insiders regarding the trends affecting auto loan performance, including longer maturities on used auto loans. “Borrowers can get underwater very easily on a used car with a 7-year loan,” Joseph said. Click here to view the full article.
Joseph Cioffi shared his insights with American Banker, authoring an article, “A Whole Lot of Hurt in Auto Lending May be Coming,” examining troubles on the horizon for subprime auto lenders and investors in subprime auto loan ABS. Joseph draws comparisons and significant distinctions between current market conditions and practices in the auto loan industry and the market forces and industry practices in subprime mortgage lending leading up to the financial crisis of 2008. Joseph anticipates auto lending will follow an inevitable cycle, and in the end the winners will be those who learn from the past and take corrective action now….