Synchrony Financial (SYF) warns of higher charge-off rates.

• Synchrony Financial‘s (SYF) warned that its net charge-off rates would be worse than anticipated over the next year.
• It was Synchrony's biggest one-day price and percentage declines since it went public in 2014.
• Synchrony shares have fallen 13% year to date.

• One week later:

Synchrony, a recent General Electric (GE) spinoff that provides private-label credit cards to a variety of businesses, said it expected a 20-30 basis point increase in net charge-off rates — a measure of debt that a company no longer expects to get back and has deemed a loss — and would build up reserves accordingly in Q2.

While Synchrony said it expected some level of weakness and that its loss rate was “at historically low levels,” the announcement came amid growing anxiety about consumer debt.

And as auto loans grow, so have warnings about potentially higher delinquencies. Other analysts have said banks are running out of higher-quality borrowers to target, forcing them to reach for less reliable ones.