UBS Blames Fed For “Crisis High” Subprime Defaults; Says Auto Is Just The Beginnning

For months now we’ve been writing about the mysteriously rising subprime delinquencies afflicting auto ABS structures despite repeated confirmations from the Fed and equity markets that ‘everything is awesome’ (see “Auto Bubble Burst Begins As Subprime Delinquencies Soar To 2009 Levels” and “Signs Of An Auto Bubble: Soaring Delinquencies In These 266 Subprime ABS Deals Can’t Be Good” for a couple of recent examples).
Shockingly, as confirmed by the chart below, 2016 vintage subprime auto ABS structures are even underperforming 2007/2008 vintage securitizations.

This post was published at Zero Hedge on Apr 4, 2017.