I'm not saying warehouse guarantees solvency or profitability...

I'm not saying warehouse guarantees solvency or profitability but in APT's case I am happy to back to to say it will eventually, given the turn and reuse of a 400m capital revolving receivable warehouse is more like $1.6bn vs a more traditional RMBS or CMBS warehouse.

Though the above isn't the point, I'm stating that a Major bank and international banks are having a slice of the pie via their exposures from the warehouses. I have no specifics but i would imagine the convents i.e. avg loss rates, arrears ratios etc would trigger stop funding and amortisation events well and truly before it eats into a senior's Credit enhancement. NAB wouldn't be able to fund the lower tranches given it would be too costly with APS120 so i imagine there is a couple mezz holders and APT themselves (skin in the game we call it) funding the lower tranches.

so back to the original point, they will have exposure to BNPL behind the scenes, so why would they be hard press to build it up themselves from scratch. People say there is no moat or the APT credit model is not hard to replicate. Yes and no, the tech and modelling is based of years of consumer spending behaviour data and fine tuning it. If a bank starts from scratch, they will need to go through the same process. Your spending habits via your bank accounts vs credit card or a BNPL option is very different.

I got to see APT very early days via some insto stuff and there is a lot more under the hood than these forums seem to think.