We expect Cobra Equity Holdco LLC to maintain its disciplined underwriting amid rising interest rates, persistent inflation, and potential uptick in unemployment. First-half 2026 originations increased 3.2% year over year to $3.7 billion, given growth in the core dealer and direct refinancing channels. The portfolio remains predominantly nonprime, with over 90% of receivables associated with borrowers having FICO scores below 660. Annualized net charge-offs increased to 9.4% from 9.0% a year earlier, while 30-plus-day delinquencies rose to 15.0% from 13.9%. We expect losses to remain elevated as newer vintages season and lower-income and subprime borrowers continue to face affordability pressure amid moderating economic growth. Although U.S. consumers have remained resilient, real consumer spending growth is expected to slow from 2.2%
