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Fears around the weakening health of lower income consumers are spilling into the high-yield bond market after the collapse of subprime auto lender Tricolor.

Such worries are nothing new if only because jittery market participants have scratched their heads over the US consumer’s ability to power through a historic increase in tariffs, mass government layoffs and elevated interest rates.

But with the bankruptcies of Tricolor and First Brands drawing headlines, which 9fin has covered in detail here and here, lenders say it’s no wonder that fears about lower income households have gained new impetus.

As a result, consumer finance names have underperformed the broader high-yield market this week, according to research notes published on Thursday by both Goldman Sachs and Bank of America.

“The economy is in a situation where we’ve seen positive growth concentrated in the higher income version of the universe — that’s where we’ve seen jobs, wealth accumulation. But we’re seeing unemployment weakening those subprime borrowers,” said Tim Crawmer, global credit strategist at Payden & Rygel.