Bread Financial: Attractive Yield From A Seasoned Consumer Lender

Bread Financial offers robust consumer lending, boasting a long track record of positive net income—even through recessionary cycles. BFH funds itself primarily through low-cost deposits, maintaining a Tier 1 capital ratio near 14% and BB credit ratings. Series B Preferred Shares yield 8.9% (stripped), compensating for recession-driven risks in the consumer lending sector. We are a 'Buy' for a small allocation in BFH.PR.B, emphasizing sustainability and resilience over high profitability.

Bread Financial Holdings, Inc. (BFH) is a U.S. financial services company that provides payment and lending solutions to consumers in North America. The company rebranded itself in 2022, formerly called Alliance Data.