Editor’s Note: Looking to better understand why General Motors (GM) and Ford (F) auto sales came in light this week? Below is a brief excerpt from an institutional research note written by Hedgeye Financials Analyst Josh Steiner and U.S. Macro analyst Christian Drake. To access our institutional research email sales@hedgeye.com.
"Auto Loans: With concerns rising over auto loans, especially in the subprime space, banks have begun to tighten standards for the first time since the Senior Loan Officer Survey introduced this category. Although the introduction of the auto loan category post-dates the GFC, the implications of consumer credit tightening are fairly straightforward vis-à-vis the capacity for Main Street credit and consumption. On net, 8.1% of banks reported tightening standards for Auto loans."
