US subprime auto losses reach highest level since crisis

NEW YORK: US subprime auto lenders are losing money on car loans at the highest rate since the aftermath of the 2008 financial crisis as more borrowers fall behind on payments, according to S&P Global Ratings.

Losses for the loans, annualised, were 9.1% in January from 8.5% in December and 7.9% in the first month of last year, S&P data released show, based on car loans bundled into bonds. The rate is the worst since January 2010 and is largely driven by worsening recoveries after borrowers default, S&P said.