I agree with your point on mispricing risk - I build credit risk models for a living, though not for US banks and have limited understanding of the US market.

I agree with your point on mispricing risk - I build credit risk models for a living, though not for US banks and have limited understanding of the US market. On a broader note, even the sub-prime business was highly profitable and attractive to investors till the GFC. Only time will tell if these companies have a sustainable business model.