Even subprime auto finance is showing up green as the economic recovery amps up. KBW last week lowered its investment rating for AmeriCredit Corp. not because the company is doing poorly, but because the investment bank says it is doing too well. KBW’s assessment prompted the i-bank to turn in a positive report for subprime auto finance. An excerpt:
The subprime auto finance industry should benefit as access to funding continues to improve and credit losses decline. However, increased competition, potentially more limited funding availability and still high unemployment may pressure earnings growth.
Welcome to 2003, folks.
