Why Subprime Auto Loans May Be the Next Big Short

The video discusses the impact of subprime auto loans on the economy, comparing it to the housing crisis. It explores the role of yield premiums, investment risks, and the influence of private equity in subprime lending. The challenges faced by auto dealers, including the influx of used cars and declining prices, are highlighted. The discussion also covers investor perspectives on automotive-backed bonds and economic indicators.

In what ways have the yield premiums on subprime auto loans changed, and what does this indicate about investor behavior?

What are the potential risks associated with the current trends in used car prices and dealer inventories?