Upstart update, auto financing vertical

7. Upstart (UPST) – Auto Lending

Upstart announced two application extensions for its Auto Retail Platform: Digital Financing & Online Searches. With these two products now available in a fully digital format, Upstart can offer dealers across the country an end-to-end digital car buying application process. While that sounds like table stakes (because it is in other sectors), it’s actually something that does not exist today without several manual controls and paperwork frustrating customers, lowering conversion & fostering time delays.

Not sure that the link will work. Did not work. Sorry.

Upstart still making improvements and, I think, building a foundation for a significant vertical. That is why I am hanging around, why I am reducing position going into earnings, and selling the puts to automate a purchase of shares if management disappoints with results and forecast and general messaging.

KC

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Another securitization of auto loans rated by KBRA. This is the third this month. About $800 million worth, in total.

KBRA assigns preliminary ratings to four classes of notes issued by Foursight Capital Automobile Receivables Trust 2023-1 (“FCRT 2023-1”), an asset backed security collateralized by a pool of auto loans.

FCRT 2023-1 represents the thirteenth rated term ABS securitization for Foursight Capital LLC (“Foursight” or the “Company”). This transaction will be collateralized by approximately $201.07 million of mostly near-prime automobile loans secured by new and used vehicles. As of the December 31, 2022 statistical cutoff date, the weighted average credit score, interest rate, original term and remaining term were 640, 15.25%, 72 months and 70 months, respectively. The average loan amount was $27,847, and 92.97% of the loans were secured by used vehicles.

Will be interesting to see the auto loan volume for UPST when they report Q4.

KC

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