AAA bonds rated just two months ago are crashing, with lower tranches nearly worthless. Subprime auto debt tied to fraud is imploding while rating agencies keep pretending nothing is wrong.
First blood….. https://t.co/LEFhuiY4JY
— Bogachan Ozdemir (@Bogachan_1971) September 11, 2025
🚨Tricolor’s AAA bonds (rated 2 months ago July ’25) just plunged—par to 78¢, lower tranches to 12¢.
Rating agencies are partying like it’s 2008, slapping AAA on junk.
The music’s stopped, & subprime auto debt tied to fraud is crashing fast. Same playbook, new bubble. https://t.co/f4g3EY8qUq
— The Coastal Journal (@1CoastalJournal) September 11, 2025
Banks’ loans to shadow lenders (NBFIs) have surged +100% since 2020, while total bank loans rose only ~25%.
Credit growth is piling into the shadows, not the real economy. If defaults hit, leverage loops back to banks. Fragility is rising fast—classic crisis fuel. pic.twitter.com/5z9Zn51UE3
— The Coastal Journal (@1CoastalJournal) September 11, 2025
Subprime Auto Lender Collapse Delivers Blow to Risky Debt Market (it begins)
Debt-fueled “growth” based on lending to the manifestly non-creditworthy was never a sustainable business model.