Auto loan delinquencies – led by subprime – have now surpassed their Great Financial Crisis peak (from S&P Global Mobility via PRNewswire on June 20)…

With American households battling inflation and rising interest rates, auto lenders are seeing increased occurrences of auto-loan delinquencies – but almost entirely in the subprime segment. Surpassing levels last seen during the Great Recession, account-level delinquency rates of auto loans 60+ days past due (DPD) have risen 26 basis points from Q1 2021’s 1.43% to

This disturbing trend suggests the rise in auto loan delinquencies is just getting started (from Automotive News on June 21)…

More Americans are entering into auto loans that exceed the worth of their cars after vehicle values declined in the wake of dramatic increases during the pandemic, a report has found. Used car loan-to-value ratios increased to 125 in the first three months of this year from 104 for the same period in 2021, according

Commercial real estate (CRE) brokerage CEO: “What’s happening in the office sector is apocalyptical” (from Fortune via Yahoo! Finance on June 1)…

There’s a lot of uncertainty surrounding commercial real estate, with all eyes on the office space. From research notes published by the big banks to academic papers, it’s not looking too good for the sector that has been plagued by remote work. But is the office the next shoe to drop in an already turbulent

A massive wave of CRE mortgages is set to come due over the next few years (from The Wall Street Journal on June 6)…

Nearly $1.5 trillion in commercial mortgages are coming due over the next three years, according to data provider Trepp. Many of the commercial landlords on the hook for the loans are vulnerable to default in part because of the way their loans are structured.  Unlike most home loans, which get paid down each year, many

Renters could soon regain the “upper hand” for the first time in years (from The Wall Street Journal on June 13)…

Apartment rent growth is declining fast, shifting the rental market to the tenant’s favor for the first time in years. The average of six national rental-price measures from rental-listing and property data companies shows new-lease asking rents rose just under 2% over the 12 months ending in May. That is down from the double-digit increases

The CRE downturn could wipe out more than 300 banks in a worst-case scenario (from American Banker on June 9)…

A sharp downturn in commercial real estate performance could have a big impact on the banking sector, but not big enough to destabilize the financial system, according to analysis from one of the top real estate economists in the country. More than 300 banks have enough commercial real estate loans on their books to see

This corner of the real estate market is defying the broader downturn (from The Economist on June 15)…

Ubiquitous and unremarkable, self-storage solves a deeply American problem: what to do with too much stuff. A bunch of empty rooms near a highway is not the sexiest part of a property portfolio. Yet few property assets have matched their performance lately.. One reason is more people moving house. (Ron Havner, former boss of Public

U.S. housing inventory has fallen nearly 40% over the past five years (from National Mortgage News on June 15)…

For-sale housing supply saw its biggest drop in over a year, with inventory now almost 40% below levels seen in mid-2018, according to new data from Redfin.  The total number of home listings tumbled 6.3% year-over-year for the four-week period ending June 11, the largest decrease in 13 months, the online real estate brokerage said.

Mortgage originations continued to plunge in the first quarter of the year – and big banks are leading the way lower (from S&P Global Market Intelligence on June 22)…

Retail and wholesale originations of one- to four-family mortgages dropped sequentially in the first quarter, while home prices increased at a slower rate. The Federal Housing Finance Agency House Price Index growth slowed to 4.3% year over year. Retail originations fell 64.9% and wholesale originations dropped 60.5% year over year, according to an S&P Global

Details on a unique arbitrage opportunity in Berkshire Hathaway stock (from The Rational Walk on April 27)…

I have been fascinated with arbitrage opportunities for decades. In cases where the same asset is traded in multiple markets or very similar assets are traded in the same market, opportunities can arise to earn profits at relatively low risk, at least in theory. As computer algorithms get more sophisticated, it is logical to think