Affirm had to halt a debt offering on Friday in a move blamed on rate market volatility, as confidence sinks in buy now, pay later in a rising rate environment.
Confidence in the buy now, pay later sector is evaporating as US operator Affirm halted a bond sale on Friday after an investor backed out, in a move blamed on growing levels of credit rate volatility.
Affirm stock plunged 15.5 per cent in response to the Bloomberg report, and is down 82 per cent since November. US-focused rivals and merger candidates Zip Co and Sezzle hit multi-year lows on the ASX on Monday and have cratered more than 80 per cent in 12 months.
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Tom Richardson writes and comments on markets including equities, debt, crypto, software, banking, payments, and regulation. He worked in asset management at Bank of New York Mellon and is a member of the CFA Society of the UK as a holder of the Investment Management Certificate. Connect with Tom on Twitter. Email Tom at tom.richardson@afr.com
