Heading into 2025, the focal points for the specialty finance sector include a stable consumer base, improved consumer credit trends particularly among prime borrowers, persistently high mortgage rates, and a more relaxed regulatory environment. Since the election, shares in the consumer lending sector have performed robustly, somewhat accelerating expected returns and complicating stock selection processes. The strategy that was effective in mortgage finance in 2024 is being carried forward to 2025, with a preference for companies having balanced business models. Analyst preference leans towards stocks that possess unacknowledged positive catalysts capable of generating further gains. Moreover, air lessors are still perceived as undervalued, while there's a suggestion of caution towards mortgage credit.

The results of the recent November election seem to have revitalized economic enthusiasm, enhancing business and consumer confidence in anticipation of a more pro-business climate. This shift has heightened expectations for the U.S. economy while diminishing prospects for further Federal Reserve easing. This scenario is viewed as favorable for companies linked to consumer credit and spending, but less so for those connected to the mortgage market, which continues to suffer from high rates and a shortage of housing supply.