Investopedia has a list of companies whose debt bought by the Fed. There are 800 companies but the top 6 make up 10%. The top three are foreign car companies: TOYOTA MOTOR CREDIT CORP , VOLKSWAGEN GROUP AMERICA, and DAIMLER FINANCE NA LLC
Just like in the subprime crisis, but with car loans, there are now car-loan backed securities (including one from GM).
But, says this law firm, nothing to worry about because:
- Negative sentiment is more tempered than one might expect given the economic uncertainty and unemployment rate.
- Servicers are the most positive group, perhaps due to their advantageous position to receive performance information early and react and respond to borrowers.
- Layered risk is less of a concern than its coverage in the press suggests.
So move on, no Big Short to see here.
