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BNPL is a new sub-prime issue, but it's not clear where a bubble enters the picture given that these loans are not securitized AFAIK. On the asset side, Affirm'
by __derek__ 4y ago
BNPL is a new sub-prime issue, but it's not clear where a bubble enters the picture given that these loans are not securitized AFAIK. On the asset side, Affirm's valuation has already dropped 90% from ATHs, and Klarna is apparently raising at a similar fraction of its previous value.
(edit: demoting comment about flagging for an editorialized title to this addendum)
- davidw 4y agoIIRC, you should use the 'flag' link for stuff that's really off topic, not just for a bad title.
- __derek__ 4y agoBoth the FAQs[1] and Guidelines[2] suggest that it's appropriate to flag submissions that violate the Guidelines, and editorializing titles does so: > Otherwise please use the original title, unless it is misleading or linkbait; don't editorialize. [1]: https://news.ycombinator.com/newsfaq.html https://news.ycombinator.com/newsfaq.html [2]: https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html
- tyrfing 4y ago> these loans are not securitized AFAIK. They are, but not in quantities to actually matter. Here's background on Affirm's ABSes, the last offering was pulled: https://www.bloomberg.com/news/articles/2022-03-11/-buy-now-pay-later-lender-affirm-delays-asset-backed-bond-sale https://www.bloomberg.com/news/articles/2022-03-11/-buy-now-... A cool consequence of this is that you can find background info on what sort of loans they make: https://finsight.com/deal-51195-affirm-asset-securitization-trust-affrm-2021-a https://finsight.com/deal-51195-affirm-asset-securitization-...
- __derek__ 4y agoThanks for the correction. It makes sense that they would be, but I hadn't looked into it before.