Weekly Wrap: Earnings season kicks off, COVID-19 spurs increased reserves [VIDEO] | Auto Finance News | Auto Finance News

Weekly Wrap: Earnings season kicks off, COVID-19 spurs increased reserves [VIDEO]

© Can Stock Photo / yellowj

This week kicked off first-quarter earnings season with JPMorgan Chase, Wells Fargo, Bank of America, and Consumer Portfolio Services reporting increased loss reserves as the COVID-19 economic crisis continues to rattle the industry.

Bank of America, for one, tapped the Federal Reserve’s March 27 option to delay current expected credit loss (CECL) implementation until 2022.

Subprime lender Consumer Portfolio Services was the first independent auto lender to report earnings, which showed CPS holds enough liquidity from the ABS market and its warehouse credit lines to sustain the business throughout the pandemic.

Auto Finance News also uncovered liquidity figures for BMW Group showing that the automakers’ global finance structure and diversified funding sources insulate BMW Financial Services from potential liquidity concerns brought on by the pandemic.

In this editors’ roundtable, Nicole Casperson and Joey Pizzolato, of the Auto Finance News editorial team, discuss news developments during the week ending April 17, and give some hints as to what Auto Finance News will cover in the forthcoming week.

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