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Stock impact report

The Private Credit Crisis Is Spreading [zero hedge]

LendingClub Corporation (LC) 
Last lendingclub corporation earnings: 2/18 04:06 pm Check Earnings Report
US:NYSE Investor Relations: ir.lendingclub.com
Company Research Source: zero hedge
The Private Credit Crisis Is Spreading Submitted by QTR's Fringe Finance The private credit crisis is spreading to another corner of the market that I warned about back in October, when I wrote about 10 parts of the market I’d avoid. For years I’ve been warning that buy now pay later (“BNPL”) industry was built on a pretty fragile foundation. The quality of the loans was always the obvious problem. The entire business model revolves around extending instant credit with minimal underwriting to consumers making small purchases. Companies whose primary innovation is allowing consumers to split a $40 online purchase into four installment payments probably aren’t lending to the most creditworthy segment of the population. If anything, the model practically guarantees the opposite. When financial companies create products that allow consumers to finance extremely small discretionary purchases, they are effectively targeting borrowers who either don’t have the liquidity to cover those purcha Show less Read more
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