Expectations are low for Capital One (COF) headed into earnings, says Jefferies, and it's a good...

|About: Capital One Financial Co... (COF)|By:, SA News Editor

Expectations are low for Capital One (COF) headed into earnings, says Jefferies, and it's a good thing. The company's efforts to deploy low-yielding ING Direct assets into high-yielding credit card assets hasn't been terribly successful. While CapOne has pledged not to "reach" in auto loans, Jefferies can't help noticing loan terms getting longer, subprime originations growing strong, and collateral values at risk of sliding faster than usual.