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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (46205)	1/17/2012 12:54:58 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78688

>>You lost me when you said that vehicle financing is low risk. Wasn't this the reason a lot of companies almost went under in 2009 including HOG, GE, etc.? ;)<< Did you hear about any problems about VW , BMW or Daimler's financing business in 2008/2009? There wasn't any - at least not in Europe. Car loans in Europe tend to be very well collateralized. Even in the Us, car loans performed quite well. Also, BMW and VW have their own banking subsidy that actually collects deposit and runs savings accounts for folks in Europe, which makes it easier to maturity match liabilities and assets. Thisis very different from GE and possibly HOG which are heavily depending and securitization and commercial paper funding. I think a better comparision would be CAT's financing subsidy, which I believe did not have serious issues either.