Burrito Now, Pay Later
(enterprisevalue.substack.com)
tl;dr: Burrito bonds represent finance doing what it does best: unbundling risk, pricing it granularly, and allocating capital more efficiently. BNPL unbundles consumer credit into tradeable assets to let the market decide who should hold the risk. The result is lower borrowing costs, and a more efficient credit market.
tl;dr: Burrito bonds represent finance doing what it does best: unbundling risk, pricing it granularly, and allocating capital more efficiently. BNPL unbundles consumer credit into tradeable assets to let the market decide who should hold the risk. The result is lower borrowing costs, and a more efficient credit market.