New York Life Bets Big on Affirm's Buy Now, Pay Later Model

New York Life is putting a lot of trust in Affirm, a company that lets people buy things now and pay later. They have agreed to buy up to $750 million in Affirm's loans by 2026. This is a big deal because it lets Affirm lend more money without holding onto all those loans themselves. It's not the first time these two have teamed up. Last year, New York Life started investing in Affirm's loans. Now, they've put almost $2 billion into them. This isn't just about Affirm and New York Life. It's part of a bigger trend where insurance companies and private lenders are putting more money into consumer loans. Why? Because higher interest rates make these loans more profitable. So, it's a smart move for them.But the lending world is a bit shaky right now. Even though people are still spending money and late payments are going down, investors are nervous. There have been some big bankruptcies in the subprime lending world. Still, Affirm has some big-name backers. This shows they believe in the company's future. Affirm has helped finance over $100 billion in purchases, and most of their borrowers come back for more loans. Wall Street seems to like Affirm too. Analysts give it a "Moderate Buy" rating. They think the stock could go up by 17% in the future. But remember, investing is risky. Past performance doesn't always predict the future.