FreePYPL7 min read
PYPL — deposits are stickier than feared (Part 2)
PYPL
Delayed
The thesis
Deposit betas are behaving better than the bear case modeled.
Capital return capacity is underappreciated after the stress noise.
What I'm watching
- PYPL NIM vs guide
- net charge-off trend
- A clean move through the level I flag below
Positioning
Neutral / hedged on PYPL, 1-6 months horizon. Conviction: Medium. Rate path swings the NIM story both ways.
Opinion, not investment advice. The author may or may not hold positions discussed.
Opinion. The author may or may not hold positions discussed. Not advice. Not a financial promotion approved under FSMA s.21. Quote data is delayed. Past performance is not a reliable indicator of future results.
Comments
1 commentReading this again with hindsight. The risk section aged nicely.