Bloomberg: Subprime Credit Woes Hit Consumer Lenders

Recent volatility in the consumer credit market is negatively impacting shares of lenders focused on financially vulnerable Americans. This instability is affecting companies across the sector, despite the apparent strength of the broader U.S. economy. Several examples illustrate this downturn. Auto lender Ally Financial Inc. experienced a 13% stock decline over a nine-day losing streak. Fintech lenders were particularly affected, with Upstart Holdings Inc. and Pagaya Technologies Ltd. both experiencing stock declines exceeding 20% during the same period. Digital payments company Affirm Holdings Inc. and lender Bread Financial Holdings Inc. also suffered significant losses. Even Capital One Financial Corp., a major credit card issuer, saw its shares decrease by 7%, demonstrating the widespread impact.