November 2025 Update: Consumer Unsecured Strength Reasserts Itself

dv01’s November Consumer Unsecured Performance Report is now live. After October’s shutdown-driven volatility, November data confirms the sector has returned to broad-based outperformance, extending one of the strongest credit performance periods in the asset class’s history.

The report also highlights a more underappreciated dynamic: despite higher credit card rates, the interest banks actually earn has increased far more modestly once seasonal effects are accounted for.

Quick Insights

• Shutdown Effects Reversed: October’s deterioration proved temporary, with impairments, delinquencies, and charge-offs all improving materially versus seasonal expectations.

• Credit Cards - Headline Rates vs Reality: As shown in the FFIEC chart above, interest earned on credit cards has risen far less than headline APRs, underscoring the gap between advertised rates and realized economics.

• Charge-Offs Back Below 2019 Levels: November charge-offs declined to levels last seen pre-COVID, reinforcing the durability of recent underwriting and borrower behavior.

• Returns Remain Intact: Faster return of capital in recent vintages continues to pressure reported ROI while supporting strong IRRs for investors.