Requiem For A Crisis.

Kind of makes you think…


‘Things Aren’t Falling Apart, But’ – Dismal Auto Sales Unleash Treasury Rally

“… but they are definitely falling.”

Mary Kane Loses It: Blasts Media For “FAKE, Irresponsible” Auto Coverage, Delivers Magnum Opus

Dear mainstream financial media: are you trying to make Citi’s Mary Kane lose her fucking mind? Because that’s what it seems like.

“Investors Have Been Lulled To Sleep”: BofAML Deep-Sixes The Recovery Myth

“The S&P 500 is at near record levels despite the fact that EPS hasn’t really changed in 3 years. So which economy is going to show up later this year and in 2018? We think the jury is still out.”

Mary Kane Is Back: “Ignore the Subprime Naysayers,” The Loch Ness Monster Isn’t Real

“May 2nd marked the anniversary of the Loch-Ness monster legend. Science has not been able to document the creature’s existence, yet the fable perpetuates. Similarly, the media has promoted irrational nervousness about the auto lending market, with little-to-no foundation.”

Look! A Scary Auto Loans Chart.

Those who frequent these pages are well-versed in the ongoing auto ABS debate. See the thing is, a whole lot of people are interested in shorting subprime auto paper. With the possible exception of CMBX 6, auto ABS is at the top of the list when it comes to “the next ‘Big Short’ candidates.” One…

Either I’m An Idiot (Certainly Possible) Or Citi Isn’t Sure Who Steve Eisman Is

I want to preface this by saying that I may just be an idiot here and God knows it wouldn’t be the first time.

This Chart Shows “The Clouds Darkening For US Autos”…

“…nearly double the average differential by this time last year.”

Don’t Be A Subprime “Hero”: Wall Street Wants You To Know This Ain’t A Movie

“…it’s not wise to believe everything you see in a movie and hit films are not the best source for trade ideas.”

BofAML Warns Of “Car Crash” That Could “Ripple Through The US Economy”

“Of course, this only accounts for the direct hit to the economy. There would be incremental pain from spillovers into auto-related parts production, transportation and trade. Moreover, such weakening in auto sales would be an indication of broad-based deterioration in consumer sentiment, which could ripple through the economy.”

4 Charts Show The US Auto Bubble “Slamming On The Brakes”

A visual “downshift”…

Goldman’s Hatzius: “Unpleasant Trend” In US Auto Market – And Uber/Lyft Will Make It Worse

Longer term, the risks to these estimates are probably on the downside, especially if the “sharing economy”— exemplified by companies such as Zipcar, Uber, Lyft, and Via—makes deeper inroads into the transportation sector).

Goldman “Unmasks” The Culprit Behind US Auto Loan Delinquencies

” However, the chart masks the growth of “deep subprime” lending programs, targeting borrowers with credit scores far below the 620 cutoff. For example, some recent deep subprime ABS transactions featured pools with average credit score of just 545, with 20% of borrowers not having a credit score at all, a condition known to signal high default risk.”

Car-mageddon: Your Complete Guide To A Bursting American Auto Bubble

“There are a number of negative implications from what we’re observing, including rising negative equity in new car loans, lengthening ownership cycles, tightening credit, and potential for deteriorating mix/pricing (And we see risk of continued deterioration as used vehicle prices remain under pressure, and new vehicle inventories remain elevated).”