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Fintech companies are literally passing the buck to private credit

In recent weeks, Elliott, Carlyle, Fortress and Blue Owl have collectively agreed to purchase tens of billions of dollars' worth of loans, for consumers, automobiles and home equity.

Upstart shares jumped nearly a fifth, adding $700mn of equity value. Shares of SoFi rose a tenth when it recently announced its own $2bn loan sale agreement with Fortress Investment Group.

Tags

lending, consumer