I personally don't understand the fear around subprime auto. I know a fair amount about the industry and have a good friend who manages a subprime portfolio for a bank. The risk to the business seems to be all the money flowing in searching for yield has brought down the interest rates. But investors seem concerned not just about subprime auto but all auto in general and I just can't figure out why they care so much. Perhaps it is a fear of growth slowing or near term profitability declining slightly.
