The automotive finance sector has seen used auto finance rates peak at 7.6%, prompting institutional investors to reassess positions in high-yield asset-backed securities linked to auto loans. Market sentiment ties this trend to stronger dollar headwinds. Chanos built his name shorting Enron, which, like First Brands, made substantial use of off-balance sheet financing and whose collapse led the 2001 stock market crash. Used car loan rates are usually higher than those for new car purchase loans. In trading floors today, sentiment around used auto finance rates is cautiously bearish, with analysts suggesting that persistently high levels could cap loan growth and dampen auto retailer stock rallies in summer
