WSJ: Alternative Lending Complicates Consumer Credit Data

The WSJ reports that private credit is increasingly extending loans to U.S. consumers, complicating traditional measures of consumer credit health. As alternative lending, BNPL arrangements and privately funded lending expands, investors’ ability to assess consumer debt risk using conventional data is becoming more limited. While broader funding access for borrowers may strain traditional data’s ability to capture stress in consumer credit markets, alternative indices do not show major signs of weakness. 

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