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Why Bond Rates Aren’t Falling With the Fed

Barometer gauge showing surety bond rates steady despite lower Federal Reserve funds rate, symbolizing risk premiums holding firm in the market.

The Fed is cutting rates, but surety bond and reinsurance costs aren’t budging. Long-term yields and risk premiums remain elevated as carriers absorb higher claim severity and liability exposure. In this issue of Ashton PULSE – Florida, we break down why bond rates aren’t moving, how market risk outpaces monetary policy, and what it means for dealers managing reinsurance programs.

Texas Used-Car Market Risk

Texas dealership lot with rows of used vehicles, representing rising inventory volume and aging risk in the Texas market.

Texas is facing a unique used-car market landscape as we approach 2026, with rising inventory prices, declining turnover rates, and an alarming amount of aging inventory. With average retail prices soaring to $30,934—significantly above the national average—dealers are under increasing pressure. As cash flow tightens and inventory refresh slows, the risks for lenders and reinsurance providers grow. Discover how these trends impact Texas dealers and what strategies can be employed to navigate this challenging environment. Read on to learn more about the critical insights and recommendations for success in the coming year.

The Truth About Reinsurance: How Florida’s Aging Inventory Is Eroding Dealer Profit Pools

row of parked cars with a single red vehicle in focus, symbolizing high-mileage inventory and rising reinsurance risk in Florida dealerships.

Florida dealers are carrying more inventory than ever—and more of it is aging fast. New data shows nearly 100,000 additional vehicles on Florida lots since August, with one-third now high-mileage units. That shift is quietly eroding reinsurance profit pools as carriers absorb higher claim severity and exposure on older vehicles. In this month’s Ashton PULSE report, ASC Warranty’s Greg Reuter introduces RISC™, a new tool to help dealers measure and manage risk in their reinsurance programs—and protect profitability even as bond rates stay firm despite Fed cuts.

Why Client Service Is an Underwriting Advantage — Even in the Age of AI

The future of underwriting isn’t man or machine. It’s yes and — AI for speed, Ashton for relationships. That combination keeps bonds moving, rates stable, and clients protected.

AI can process data faster than ever, but underwriting still depends on relationships. In this edition of Ashton PULSE – Florida, Danielle explains why client service remains an underwriting advantage in the age of algorithms—and how human insight complements AI to help clients navigate complex regulatory and risk environments.

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