Some Hedge Funds Want to Make Subprime Auto Loans Next Big Short (But Banks Won't Touch The Trade)

``A group of hedge funds, convinced they have found the next Big Short, are looking to bet against bonds backed by subprime auto loans... The demand now is coming from hedge funds that trade everything from stocks to bonds, analysts said. But many banks, including Bank of America Corp. and Morgan Stanley, are not interested in making the bet happen for clients, according to representatives of the firms. Some said they fear that helping clients wager against car loans would be bad for their reputation, and that new capital rules and other post-crisis regulations would make the transactions difficult or even impossible to put together... "A trade like this is just taboo now," Friedman said.''