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You might remember that Goldman Sachs is lending to subprime borrowers. Turns out, it’s all part of a plan to help predict the next credit cycle.
In February, Goldman surprised Wall Street when it said that more than 80% of borrowers for its Marcus consumer-lending product had a FICO score of more than 660 at year end. The implication was that nearly 20% had a score of less than 660, placing them in a group often referred to as subprime.
Wall Street analysts were perplexed. In April, Autonomous Research’s Guy Moszkowski asked for an explanation, saying several of his clients were surprised by the scale of subprime lending at Marcus.
In exchange news, a woman will lead the New York Stock Exchange for the first time in its 226-year history. Stacey Cunningham, the chief operating officer of the NYSE, is set to become the president of the exchange venue, which is owned by Atlanta-based Intercontinental Exchange. She will be the exchange’s first female president since its founding over 200 years ago.
Cunningham will replace Tom Farley, who has served as the president of NYSE since 2014. Farley was the second-youngest person to head the exchange.
We also spoke to the chief marketing officer of JPMorgan who told us that even though fewer people are watching TV than ever before, the bank is is pouring more of its whopping $5 billion ad budget into the platform and is retreating from digital.
In markets news:
- The market’s biggest and most influential investors are altering their strategy – here’s what they’re doing and what it means for you
- Trump’s tax cuts are having an unintended consequence on corporate America, and it spotlights one of the biggest risks to the economy