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Sure. Does that availability change meaningfully with a change in broader interest rates, though? Is there a lender that decides to stop making payday loans an

• naniwaduni 3y ago
  Because parity of expected returns is achieved roughly when interest rates remain roughly proportional along the risk curve, and of course subprime loans are particularly sensitive to repayment risk as rates go up, it's absolutely possible to get priced out of payday loans. At the level of individual lenders, this looks more like all institutions shifting slightly toward lower-risk lending across the board than any individual lender choosing to buy t-bills instead of making payday loans. But then again, that's exactly what "maintaining higher capitalized operating reserves" means.