This commentary discusses the building headwinds impacting the auto finance sector. Key highlights include: • Following two years of strong results due to robust used vehicle values and lower credit losses, potholes are emerging in the operating environment for U.S. auto finance companies that will be headwinds to their financial performance over the near-term. • Going forward, we see higher funding costs as continuing to pressure net interest margins and company bottom lines, especially ...
This commentary reviews the 2Q22 results for U.S. banks. Key highlights include: • While the operating environment remains complicated and uncertain, U.S. banks performed well in 2Q22. • The quarter was characterized by strong, broad-based loan growth, higher NII and NIM expansion, mixed fee income trends and still pristine asset quality. • Looking ahead, we do not expect a significant amount of changes to our U.S. bank ratings in the near term, given that nearly 90% of DBRS Morningstar-rat...
This commentary reviews the impact of Russia’s economic sanctions on the U.S. auto finance sector. Key highlights include: • The Russia - Ukraine conflict has led to a significant response from the U.S. and its allies, including the establishment of broad-based economic sanctions on Russia's central bank, several of its largest commercial banks, payment system, and transportation. These sanctions will have far reaching implications for many U.S. industries that are reliant on stable supplies o...
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