Possible scenario
Regulators Intervene
20% Chance
Federal and state regulators respond to loan terms exceeding 12 years, elevated subprime delinquencies, and complaints about affordability disclosures. Intervention reduces tail risk but also constrains auto credit and weighs on lenders dependent on high-yielding subprime originations.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
Secondary impacts
- Consumer Cyclicals -1.1%
- Finance -0.8%
Tickers
- -6.6%
Portfolio impact
S&P 500-0.4%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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