More Subprime Auto Borrowers Are Delinquent: Structured Weekly

Americans are increasingly falling behind on subprime car loans, a sign that consumer credit is getting weaker, according to a report from Barclays based on asset backed securities.

Investors are looking closely at subprime auto asset backeds after CarMax Inc.’s weaker-than-expected earnings report last week showed deepening strain in the used-car market. The auto retailer’s provision for loan losses jumped by roughly $30 million last quarter to $142.2 million, with the company citing worsening performance among some loans made in recent years.

For loans packed into subprime auto ABS, there’s weakness across the board, including both recent and older ...