Ally Bank, a leading car loan maker, provided data on overdue car loans in the second quarter to borrowers of different income levels in its earnings report. Overdue loans were at or near pre-pandemic levels for low-income borrowers.
It was impossible to know how quickly overdue loans increased, as allies refused to provide the same data in the previous quarter. Jenn LaClair, Chief Financial Officer of Ally, said in a statement, “We continue to invest in talent and technology, confident in our ability to enhance service and collection capabilities and effectively manage credit in a variety of environments. I am. “
Some analysts believe that spending recessions could spread to wealthier households.
“At the beginning of the year, I see people sitting there increase their income by saying,’Go without spending this much,’ or’Trade down to something more affordable.’ Probably. “” Said Jones Trading strategist Oruk. He added that he was waiting for revenue from Macy’s and Nordstrom to report in August to see if that was happening.
Recently, there are concerns that the large summer spending that is driving the hospitality industry and airline revenues is unsustainable. “When the invoices from summer spending come back to the roost in the fall, there are market factions who are confident that consumers are in a much more tricky place,” said Burnhurst of PGIM. rice field.
This season’s exchanges are revealing how CEOs and businesses can sustain their economies, even if they fear a recession is imminent.
JPMorgan Chase CEO Jamie Dimon warned in May that storm clouds were gathering in the economy. At JP Morgan’s second-quarter earnings briefing, Wells Fargo analyst Mike Mayo explained why banks promised such a large investment this year if things could get worse. I asked him.
