US sub-prime car loans start to raise new concerns

More borrowers in the US with spotty credit are failing to make their monthly car payments on time, a troubling sign for investors who have snapped up billions of dollars of securities backed by risky auto debt.

Delinquencies on sub-prime auto loans packaged into bonds rose in January to 4.7%, a level not seen since 2010, according to data from Wells Fargo.

Rising delinquencies are a warning sign that more loans may end up in default, said John McElravey, an analyst at the bank.