Santander’s Subprime Auto Loans Souring at Fastest Rate Since 2008

The video discusses the rising consumer debt, focusing on subprime auto loans and their increasing delinquencies. It highlights the role of Santander Consumer USA in this trend and compares it to the 2008 financial crisis. Despite concerns, the overall economic indicators like unemployment and wages remain stable, suggesting the issue is more about underwriting standards than consumer strength. The video also explores how auto loans are packaged into bonds, with risks retained by original lenders, and the potential impact of an economic downturn.

In what ways does the current situation with auto loans differ from the mortgage crisis of 2008?

What potential risks do subprime borrowers face if there is a downturn in the economy?