We had a rising interest rate environment recently and this has left the sub prime debt financing in risk of growing defaults during a weakening economy. 60 day delinquencies are already at a record high so the default calculations are likely off by a magnitude. It takes time to roil the markets then all of a sudden no takers for the debt and Carvana goes bye bye.
great overview....
We had a rising interest rate environment recently and this has left the sub prime debt financing in risk of growing defaults during a weakening economy. 60 day delinquencies are already at a record high so the default calculations are likely off by a magnitude. It takes time to roil the markets then all of a sudden no takers for the debt and Carvana goes bye bye.