Re. UPST:
BTIG Analyst Note on Loan Performance Sparks Concerns:
- BTIG issued a research note today highlighting elevated delinquency rates in Upstart-originated loans, particularly in recent vintages. While absolute defaults aren't the core issue (as they're priced into loan terms and ABS sales), the note questions whether realized losses are exceeding expectations set at origination. This could impact investor confidence in Upstart's risk modeling if underperformance persists.
- Market Reaction: The note has rippled through the sector, with PGY cited as an "overreaction" sell-off by some analysts (e.g., no direct evidence of PGY's business being hit). On X, traders are debating: one user noted, "If $UPST continues to sell loans that underperform the buyers expectations then it would be a big problem for long term growth." Another called it a "dip buy opportunity" for peers like PGY.
