Face the music, page-333

First 333 Last

Share
Profile

Follow
Nebett

2,437 Posts.

340

07/05/20

17:03

Post #: 44494208
Share

Originally posted by StefanF: ↑

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.

Expand

With all respect StefanF you're starting to clutch at straws and its starting to show you up a bit tbh.

My use of the term "highly leveraged" was relating to a $10bn company with a SP circa $40 that makes NO profit.

And you're assuming that APT could never get "into really hot water" re funding......OK,

I havent spun anything re the Afterpay payment delays to retailers.

APT Price at posting: $39.50 Sentiment: None Disclosure: Not Held
1 Upvote

0 Great analysis

Reply

Top Stories

NEC

Nine Entertainment announces its CEO is stepping down – on an ex-divvy day

BRX

Belararox to grow copper footprint in Botswana with 4,286 square km tenure

DXB

Dimerix begins recruiting young kidney disease patients in Mexico for Phase 3

MTM

Forget gallium: MTM says it's extracted gold from e-waste

SS1

Sun Silver confirms high-grade extension theory at Maverick Springs with 79.6 g/t intercept