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Klarna Aims to Offload $516 Million in Credit Risk to Fund Growth

KLAR
FintechCredit & Bond MarketsBanking & LiquidityCompany Fundamentals
Klarna Aims to Offload $516 Million in Credit Risk to Fund Growth

Klarna is reportedly developing a significant risk transfer (SRT) to offload credit risk from buy now, pay later (BNPL) loans and free up capital, according to Bloomberg citing unnamed sources. While details on deal size/structure weren’t provided, the move is generally supportive for balance-sheet efficiency and liquidity.

Analysis

Klarna is reportedly developing a significant risk transfer (SRT) to offload credit risk from buy now, pay later (BNPL) loans and free up capital, according to Bloomberg citing unnamed sources. While details on deal size/structure weren’t provided, the move is generally supportive for balance-sheet efficiency and liquidity.

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