The State of ARM

Okay, so it’s not an address before Congress, but every year, we take a similar look at where we are and what’s ahead for the ARM industry. Just like President Bush’s address Monday night, our focus this year is on the economy. We have taken a detailed look at how economic conditions and other factors will impact recoveries, mergers and acquisitions, and the pricing of delinquent portfolios.  It also addresses some likely effects of the 2008 presidential election on companies in the ARM industry.

For example, increased charge-off rates are only one facet of the changing economy. We’re watching how belt-tightening among small and mid-sized banks may encourage increased merger and acquisition among them — a trend that has a significant impact on ARM service providers with local bank clients. Among ARM companies, the growth of collection law firms has made them attractive acquisition targets for strategic and financial buyers, who see them as well-positioned in a tougher economic climate.

As you read through Kaulkin Ginsberg’s recap of the significant events of 2007 and the emerging trends we see on the horizon in 2008, I hope it will spark ideas for how your company can grow its competitive advantage in the marketplace. I invite you to let me know what you think!