Part 3/11:
This reversion could trigger a significant uptick in subprime credit risk, particularly among those who may have become dependent on the leniency of the past. While it’s not yet on par with the 2008 financial crisis, early warning signs resemble the conditions of 2007, with a surge in defaults and underperforming lenders that service these lower-tier credit segments. Companies involved in "buy now, pay later" services and tertiary lenders like Synchrony and Credit Acceptance are already experiencing notable underperformance, which may presage further deterioration.