I take your point, but also don't think that the repackaging of shitty loans into bundles that are somehow magically considered less shitty is happening at that scale anymore. And frankly, ISAs are a lot less shitty than home purchase loans to unemployed people who have near zero likelihood of paying it back unless that home goes up in value. Even if it was happening, there's no incentive towards an upwards price spiral in the code bootcamp space at the current demand levels (and the elasticity curve is very different in scalable bootcamps as compared to housing).
Had the dumb manipulations not happened, loans are actually quite straightforward to value, so I would be shocked if whoever was purchasing the ISAs didn't have at least a "much better than HN" view into what they should properly be worth.
cornel_io|4 years ago
Had the dumb manipulations not happened, loans are actually quite straightforward to value, so I would be shocked if whoever was purchasing the ISAs didn't have at least a "much better than HN" view into what they should properly be worth.
unknown|4 years ago
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