"These October numbers are bad. They're really bad, like impressively bad in terms of the delinquency rate changes and net charge-off rate changes. I try to get away from hyperbole and stay even-keeled, but these numbers are bad.” – Hedgeye analyst Josh Steiner
The October numbers from major players like Capital One (COF) and Discover (DFS) are downright recessionary. Delinquency rates are heading higher and higher, reminiscent of the Great Financial Crisis’ subprime crisis buildup.
“These things happen, people in seats like my seat notice and get very concerned and try to get people to pay attention to that,” Steiner adds. “But the market doesn’t really care until it cares, and usually the market can’t see beyond its nose. So, I’m calling it out for what it is.”
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