Looking ahead to 2025, prominent themes identified for the specialty finance sector include a stable consumer environment and improving credit trends, especially in prime sectors. Additionally, persistent high mortgage rates and a more relaxed regulatory environment are expected to shape the sector. Since the recent election, the performance of consumer lender shares has seen an advance, suggesting a premature realization of returns, which may complicate stock selection. The same strategies that influenced mortgage finance in 2024 are anticipated to persist into 2025, with a focus on companies that maintain balanced business models. A preference is noted for stocks that present positive catalysts still not fully acknowledged in their pricing, potentially offering further growth. Moreover, air lessors continue to be seen as underrated market players.

The results of the recent election appear to have reinvigorated business and consumer optimism in anticipation of a more pro-business environment, potentially reshaping U.S. economic expectations and reducing prospects for Federal Reserve easing. This environment is seen as positive for stocks connected to consumer credit and spending, though it may not benefit stocks tied to the mortgage market, which is challenged by high interest rates and a limited housing supply. With new economic estimations looking forward, substantial upside is seen even for stocks that showed strong performance previously.