Subprime borrowers have offered the yield sign to investors in recent years. Lately, though, that sign is looking more like stop.
Delinquencies of at least 60 days for subprime auto loans are up 13 percent month over month for July, according to Fitch Ratings, and 17 percent higher from the same period a year ago. Further, subprime asset-backed securities' annualized net losses are on the rise, which could spook the buyers of auto loans.
Even prime delinquencies are on the rise — Fitch Ratings' survey said that last month's prime auto loans were 21 percent more delinquent than in July 2015.