In this episode we will talk about Buy Now, Pay Later securitization.
It involves packaging short-term instalment loans—typically interest-free or low-interest point-of-sale financing—into asset-backed securities (ABS) or similar structures. Providers sell these loan portfolios to investors, freeing up capital for more lending while transferring credit risk. This practice hasgrown rapidly as BNPL explodes in popularity, but it remains nascent compared to mature ABS classes like auto loans or credit cards.
