Morgan Stanley: Subprime Auto Loan Delinquencies Near All-Time Highs, Borrowers Under Mounting Stress

By Vishwanath Tirupattur, head of global securitized product strategy at Morgan Stanley

The US consumer credit cycle is emerging as a focal point for markets amid signs of stress at the margins. The collapse of Tricolor, a subprime auto lender facing fraud allegations, has intensified scrutiny of underwriting and servicing standards across the sector.