Ok, I've been through the Compass Point SoFi sell report. There is nothing new in here, but it is a well-written analysis of the bear case. Here are what the key arguments are:
Nothing to see here. TheySoFi has many levers to pull including issuing sub. debt at the holding company and down-streaming the proceeds to the bank as Tier 1 capital. This Balance sheet will continue to grow w/ new deposits averaging 2B a qtr. Top 50 bank within 20 months.
Plus, Student loans have better execution in the secondary market than personal loans. When this spicket turns back on, you'll see far more loan sales.
Looking at the trading pattern so far today - looks like this was a cover for closing short positions. Tightly controlled ladder up. Is this even legal?
Nothing to see here. TheySoFi has many levers to pull including issuing sub. debt at the holding company and down-streaming the proceeds to the bank as Tier 1 capital. This Balance sheet will continue to grow w/ new deposits averaging 2B a qtr. Top 50 bank within 20 months.
Plus, Student loans have better execution in the secondary market than personal loans. When this spicket turns back on, you'll see far more loan sales.
What do you think of Morgan Stanley's report out this morning?
https://twitter.com/DataDInvesting/status/1679540392981843968
Looking at the trading pattern so far today - looks like this was a cover for closing short positions. Tightly controlled ladder up. Is this even legal?
I read an article a week or two back, that also completely ignored everything except banking and loans. It was weird.