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Cathie Wood Warns of ‘Serious Losses’ in Automobile Debt

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(Bloomberg) — Cathie Wood flagged the risk of “serious losses” in the trillion-dollar auto debt market, after statistics showed US used vehicle prices decreased in September.

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The Ark Investment Management LLC founder and chief executive officer cited a shift in consumer taste toward electric cars as leading to a drop in the price of gasoline-powered vehicles, according to a tweet that referenced data released by Manheim Auctions, the world’s largest reseller of used vehicles.

That organization’s US Used Vehicle Value Index posted a 3% drop in September from the month before.

Wood’s post follows a tweet last month warning about risks building for US auto debt. Vehicle loans were at an all-time high of nearly $1.4 trillion as on June 30, according to a quarterly data released by the Federal Reserve.

A Bloomberg index of asset-backed securities has lost 5.3% so far this year, less than the 20.2% slump in an index of global bonds.

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