“But beyond that, it's really going to come down to growth and our loss forecast and loss forecast specifically for the coverage. And to the extent that loss forecast improves, changes in coverage could be modest in the near term as we just reflect the uncertainty of our projections and the allowance. But eventually, the improved loss forecast is going to flow through the allowance and continue to bring the coverage ratio down as uncertainties become more certain.”

In context

“mping-off point. As I said in the prepared remarks, your coverage was down 33 basis points by two things. The bigger effect being that we typically have seasonally higher balance -- balances in the fourth quarter that require very low levels of coverage and that denominator effect from those balances put downward pressure on coverage. The other effect was that the allowance we needed for what I'll call non-seasonal growth was offset by favorable observed credit performance. And so we added $0 of allowance balance to the numerator, but the non-seasonal growth impacted the denominator. And so in the first quarter, I just wanted to provide that backdrop to say the seasonal balances will run off and so there will be a corresponding upward pressure on coverage, all else equal from that effect. But beyond that, it's really going to come down to growth and our loss forecast and loss forecast specifically for the coverage. And to the extent that loss forecast improves, changes in coverage could be modest in the near term as we just reflect the uncertainty of our projections and the allowance. But eventually, the improved loss forecast is going to flow through the allowance and continue to bring the coverage ratio down as uncertainties become more certain. And so while the direction of travel would be down, the pace and timing is going to depend on a variety of factors, one of which will include the mix of businesses, as you say, but when it's denominated to the whole portfolio, the relative growth of different forecasted loss portions of the of the book aren't going to have material impact to coverage just given that the new originations as a percentage of the overall book in any given quarter is relatively small. And then the only thing I also want to remind you of is, I know our investors look at history as a potential guide for levels of coverage. And I just want to remind you that we called out the roughly 50 basis points of impact to coverage from the termination of the loss-sharing agreement with Walmart. So that created a step funct”