I have an extremely difficult time imagining that these BNPL loans are being shoved into bonds and offloaded on to the market in a way that even resembles a result in which the buyers of those bonds are fully educated about the risks and making optimal choices. It sure looks to me like the BNPL companies have every motivation to shove off their liabilities into these bonds in a way that gets them artificially rated far higher than they should be, and turn other people not into refined, educated consumers selecting their financial investments through enlightened wisdom, but into bagholders for debt that they were basically lied to about.
The numbers coming out of these companies are simply implausible, especially their claimed delinquincy rates; unsecured debt agains subprime borrowers that up until recently wasn't reported to any credit agency, basically a perfect storm of debt that won't be paid off, but it was doing far, far better delinquincy numbers than credit card debt? Implausible. But the market, in its current mood, believes it enough for them to get away with it.
The numbers coming out of these companies are simply implausible, especially their claimed delinquincy rates; unsecured debt agains subprime borrowers that up until recently wasn't reported to any credit agency, basically a perfect storm of debt that won't be paid off, but it was doing far, far better delinquincy numbers than credit card debt? Implausible. But the market, in its current mood, believes it enough for them to get away with it.