Hi, The UK currently has phenomenal levels of Personalised Car Payment (PCP) loans to car purchasers, usually at insane rates and/or to over-extended buyers. My question is - who is holding all these assets? Are they being collateralized into CDOs or similar and if so, who is likely to be holding them and/or will serve as a proxy for me to short? Are there ETFs with a focus on this kind of debt? Similar questions apply to the UK mortgage (particularly buy-to-let) and general unsecured/subprime personal debt markets. Any short opportunities/proxies anyone is aware of?
Some are securitised but most are held on car companies' consolidated balancr sheet. Not as much risk as you think...