Friedberg: Cascading consumer credit defaults could hit over next few quarters
David Friedberg · #AIS: Bestie AMA with Valor's Antonio Gracias · Jun 7, 2022 · at 1:25:20
David Friedberg, investor and co-host of The All-In Podcast, discusses macro risks in consumer credit, BNPL loans, and subprime auto debt during an audience Q&A at the All-In Summit.
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“I'm just concerned there's a lot of loans out there, a lot of buy now, pay later, a lot of stuff that, that has floating rates attached to it. If we're gonna have a recession, we're gonna see job loss, you're gonna see these and by the way, these auto loan portfolios have, like, crazy outperformed over the last few years, and now that these, and a lot of those auto loans are floating rate those asset values are inflated, people are losing jobs. You could see a bunch of these things start to create a bit of a cascading effect over the next couple quarters, depending on how this all goes.”
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