Submitted by Infamous_Sympathy_91 t3_10p7ljx in wallstreetbets
renok_archnmy t1_j6kl8am wrote
Reply to comment by MoneyForPussy in Recession concerns overtake inflation concerns by Infamous_Sympathy_91
Just sell it down until it settles somewhere with efficient collections divisions or easy to claim insurance.
We had to offload and cut off a lot of high risk debts we were buying because our insurance was harder to tap than previous projected. The margin was getting eaten up on operations expenses making the claims as they defaulted. Essentially, we stood to profit even in default except that the hourly wage of the staff processing the default, the lag time from default to paperwork, and the cost file the claims made it less profitable than other options.
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