Highlights from Global Capital

BNPL can help create this alignment. [...]satisfying the ‘need’ for a replacement pair of shoes today falls in line with the reality that the consumer may not have budgeted for this expense today.” ABS market participants have long forecasted the rise of the BNPL sector, calling it the next frontier, particularly for marketplace loan ABS investors, owing to similarities between the marketplace lending and point of sale asset classes. Drawing a parallel to the early days of marketplace lending ABS, one analyst said the market should be wary of ‘stacking’, where consumers go to numerous lenders to take out loans at the same time without reporting it to the credit bureaus. On the buy side, US banks are propelling the post-Covid CLO boom, having increased their holdings of CLO bonds by 35% through the first half of 2021, said Bank of America.