I know you’ve got the outlook for delinquencies increasing a little bit more than typical, but then your actions on repo-ing and digital outreach, having a positive impact. So maybe you could just help us understand that trajectory specifically.Brad Brown Betsy, it’s Brad. Yes, you hit it. I think we still feel good about that, 1.2% we guided here for the quarter. You mentioned most of the critical aspects. I think the one piece is used values, right? We’ve been, again, transparent there in terms of recognizing the outperformance that we’ve seen so far this year, but also remaining cautious and prudent and balances as we kind of look at that outlook going forward.Jeff Brown Yes. Betsy, maybe the only other little factor just looking at refunds — tax refunds been a little slower this year, and sometimes that does have the downstream impact to what goes on your auto customers.
But I think as Brad said, based on everything we see today, the guidance we gave last quarter for 2Q is fully intact, and we feel good.Betsy Graseck Okay. And then second question has to do with the securities portfolio. I know you spoke earlier about AOCI and there’s a risk that it has to go into rate cap, but that’s probably over a phase-in period. So, I understand all that. I’m just wondering do you have any plans to change how you’re investing in securities from here on in? Is there any changes contemplated to composition or duration? Or do you keep on doing what you’ve been doing with the securities book?Brad Brown Yes. Betsy, it’s Brad again. So, yes, we — as I said, we’re pretty much all AFS. So given the complexion of our balance sheet, you might imagine things like HTM was never a big part of our strategy, given the nature of our balance sheet, and we’re used to managing liability sensitivity.From an overall strategy perspective, I would say we just really haven’t been reinvesting.
We’ve been cautious really through the last couple of years and growing the portfolio more than anything just around rate volatility.That said, we are holding reinvestments cash yields right now. You saw we’re building cash. And so holistically, we just don’t really see any significant change in strategy, a core part of our liquidity. But obviously, we’re going to continue to be balanced around it, and we’ll see what happens from here.Sean Leary Thank you, Brad. Thank you, J.B. I’m saying we’re a little bit past the hour here. That’s all the time we have for today. If you have any additional questions, as always, feel free to reach out to Investor Relations.Thank you for joining us this morning. That concludes today’s call.Operator And you may now disconnect.
Goodbye.
