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Subprime Auto Lender Collapse Delivers Blow to Risky Debt Market

Markets

Carmen Arroyo, Bella Farr, Scott Carpenter

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September 11, 2025

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Bloomberg

The sudden collapse of a Texas subprime car lender is sending shock waves from border-town dealerships all the way to the upper echelons of Wall Street, ensnaring giants including JPMorgan Chase and BlackRock and raising concern that pain in the multibillion-dollar market for bundled auto loans is starting to mount.

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