According to a recent LinkedIn post from Cardo AI, the firm is drawing attention to contrasting trends in the U.S. auto loan market for Q4 2025. The post highlights what it describes as record-breaking securitization volume of $48 billion alongside signs of mounting credit stress in underlying auto loan portfolios.
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The post further suggests that this divergence between headline issuance volumes and underlying credit quality may be material for asset-backed securities and private credit investors. For investors following auto loan ABS, Cardo AI’s focus on “under the hood” credit conditions points to potential risks for future performance, spreads, and funding costs despite robust deal flow.