CNBC ran a piece today that may give more clarity into Leucadia’s (LUK) recent AmeriCredit (ACF) investment.
The key take-away is that the financing companies are seeing more revenues due to the increased length of financing terms BUT, so far there have been no real increase in defaults. I still stand by my thesis that people will walk away from a home before an auto…..must get to work.
Translation: Higher profits.
Disclosure (“none” means no position): None
One reply on “More Evidence for Auto Loan Investing”
Here’s a link via Abcnews: http://abcnews.go.com/Business/story?id=4498559&page=1