"During JPMorgan Chase 's ( ) third-quarter earnings call, CEO Jamie Dimon dropped a stark warning about hidden risks in the private credit markets. Discussing the recent bankruptcy of subprime auto lender Tricolor Holdings, which filed in September amid allegations of loan fraud - and cost the bank $170 million in charge-offs - Dimon said, a "When you see one cockroach, there's probably more. Everyone should be forewarned on this one.""
"Carvana's ascent this year has been nothing short of meteoric, transforming from a near-bankrupt meme stock into a Wall Street darling. Shares have surged 70% in 2025, fueled by strong quarterly results, operational tweaks, and hype around its e-commerce model. CVNA stock, though, is up over 1,780% over the past three years. Analysts from JPMorgan and Jefferies have piled on with upgrades, citing robust used-vehicle demand and digital efficiencies."
Jamie Dimon warned of hidden risks in private credit after subprime auto lender Tricolor Holdings filed for bankruptcy, costing a bank $170 million in charge-offs and spooking investors. Tricolor's collapse recalls past crises where subprime auto loans mirrored toxic assets that contributed to 2008 turmoil. Rising delinquencies on car loans amid high vehicle prices raise concern for more failures in non-bank lending. Carvana's stock has surged, supported by demand and operational gains, but its balance sheet shows $9.4 billion in assets, $7.2 billion in liabilities, and slim equity, leaving high leverage and vulnerability in a downturn.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]