I'm confused, when you are talking about highly leveraged and future funding, are you talking about capital or their warehouse facilities? I didn't realise Afterpay was "highly leveraged" and I also didn't realise that you're a prophet that can just predict that Afterpay's bad debt will substantially rise.
For my counter argument go see my previous posts (which I've linked you to). I work in credit risk management and as I've noted before, their ability to instantly lower/stop limits to higher risk customers is it's greatest asset, and a privilage that banks and even other BNPL providers such as Z1P and FXL don't have.
In regards to Afterpay's warehouse facilities, renewals of such facilities are years away and it would require them to get themselves into really hot water for them to have any issues in raising future facilities. Also I'm not sure why "slowing growth" (not that I'm agreeing with this) would be an issue for a bank providing a warehouse facility, especially considering slower growth means the warehouse facility would need to be smaller.
And you spinning Afterpay protecting itself against retails as a negative reminds me of the guy who tried to spin afterpay's move to lower transaction to high risk customers into a negative. It's just risk management in the face of uncertainty. Not unexpected, and nothing bad about it.
APT Price at posting:
$39.50 Sentiment: Hold Disclosure: Held
