The online consumer lender Upstart Holdings is experiencing funding difficulties, with investors souring on purchases of the company’s personal loans as fears of a recession grow and its credit quality deteriorates.
“The concerns among credit investors is that the underwriting is still not under control and that consumer credit is going to get worse,” said Vincent Caintic, an analyst at Stephens.
Investor demand for Upstart’s loans has “come down significantly,” and buyers appear to be requiring a higher rate of return for the loans than they did before, he added.
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