Listen to the newest Auto Finance News Podcast, in which Matt Petrillo and I discuss the upcoming issue’s cover story on “Long-Haul Lending,” and why more and more consumers are seeking out longer-term auto loans.
We also preview the Auto Finance Summit, which will be held Oct. 22-24 at the Encore Las Vegas.
…but raising money for such loans in the bond market is costlier than it is for Ally Bank to bring money in through bank deposits.
Dah!
The good thing about the bond and/or securitization markets is they are the true arbiters of risk, unlike the Fed which tries to account for risk via capital rules, etc. The bond market has spoken and has priced the risk of lending to sub 660 borrowers. Why should the Fed second guess them?