OneMain Holdings: A 7.2% Yielder With Ample Margin Of Safety

OneMain Holdings trades at a discount, likely due to lingering fears around subprime lending and past financial crises. OMF maintains a diversified, high-interest lending portfolio, funded by relatively cheap liabilities, supporting robust net interest margins. OneMain's net interest margin appears to be sufficient to absorb potential credit losses, even in recessionary or adverse risk scenarios.