Wildfire Impairments Track Hurricane Trends in Consumer Unsecured, as Subprime Auto Worsens Overall

Quick Insights

• California Wildfires: dv01 incorporated FEMA data to our Consumer Unsecured dataset, showing that impacted areas have seen an impairment spike of 75 bps.

• TransUnion Data: The FL/GA/SC, TX/OK/LA, and AZ/NV regions continue to see much worse collateral characteristics, especially with Aggregate Excess Payment ("AEP").

• Consumer Unsecured: Performance improved in December, with all metrics outperforming seasonally-adjusted comps. Top Grade ROIs for the 2023 vintages are still materially outperforming 2022 and pre-COVID comps.

• Subprime Auto: Performance continues to weaken, with 30+ Impairments rising 190 bps MoM in December. The FL/GA/SC region continues to significantly outperform, while the TX/OK/LA region has exhibited the weakest performance over the past two months.