Analysis: Santander Share Buybacks Come Alongside Rising Auto Loan Delinquencies
Analysis: Santander Share Buybacks Come Alongside Rising Auto Loan Delinquencies. In the Federal Reserve's second-quarter report on household debt and credit, a rise in auto loan delinquencies was identified, resparking an old conversation regarding subprime auto financing by lenders like Credit Acceptance Corp. (NASDAQ: CACC) and Banco Santander SA (NYSE: SAN)'s Santander Consumer USA Holdings. In the face of an uptick in subprime delinquencies, Santander's share buybacks may be lending a false sense of prosperity, with Bloomberg reporting that analysts expect the firm to experience higher losses on auto bonds compared to its peers. The share repurchase came amid a slowdown in automotive sales and global economic growth. Since 2009, a 75% percent expansion in the auto loan market has taken place, with auto debt performance weakening due to an uptick in delinquencies among subprime borrowers, according to CityLab.