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OMF being way oversold should make a good deal of that before earnings. Terrific earnings will get us moving back to real value.
First, credit card interest rates generally go unnoticed. Most people have no idea the rate on their credit card.
Second, this recession appears it will be a decreasing on GDP without the large corresponding layoffs. There are still two job openings for every person unemployed.
Last, OMF’s customer base hold credit ratings below the best. While called sub prime, they are not the group that we’re given mortgages for which they didn’t qualify. These are working class middle and lower middle income people. The hype was that the recession would trigger huge numbers of defaults. Not only does history (of the working class defaults) not support the negative hype, if the layoffs don’t materialize, OMF’s earning should be fine given the interest rate increases.