Morgan Stanley: People Might Be Worried About Subprime Auto Bonds Because of the 'Big Short' Movie
Motivating investors to "investigate any potential source of weakness."
Brad Pitt stars as one of the protagonists in The Big Short.
Source: Paramount/www.bigshortmovie.comThis article is for subscribers only.
Blame Brad Pitt?
Auto loans made to risky borrowers and then bundled into bonds sold to investors have been making headlines for years, with some voicing concerns over an apparent resemblance between the so-called subprime auto market and the subprime housing market that sparked the 2008 financial crisis and ensuing recession.
Indeed, the parallels may not have been lost on investors either. In a note published on Wednesday, Morgan Stanley analysts led by Jeen Ng wonder whether last year's debut of The Big Short—the film version of the Michael Lewis book published in 2010—has played a role in sparking fresh worries over the asset class.