A Booming Market for Subprime Auto Loans Auto loans to people with shaky credit are bundled and sold as securities. But with auto debt, there is increasingly no exit. PhotoOne of the people Credit Acceptance sued is Nagham Jawad, a refugee from Iraq, who moved to Syracuse after her father was killed. PhotoThe strategy at Credit Acceptance, which has a market value of $4.4 billion, is yielding big profits. “The dog keeps eating until its stomach explodes,” said Daniel Zwirn, who runs Arena, a hedge fund that has avoided subprime auto investments.

Source: New York Times June 18, 2017 23:09 UTC