The current U.S. subprime auto lending market is developing a resemblance to its condition in the early- and mid-1990s, according to a report released yesterday by Moody's Investors Service.

This was the time when "overheated competition among lenders led to poor underwriting that drove up losses," the rating agency said.  Similar to that period, capital is flooding the sector while the issuance of subprime auto ABS is booming.

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