Stock prices of key finance loan companies gained 1.8% last week, outperforming the broader financial index. Market sentiment is backed by improving delinquency rates and stable cost-of-funds metrics in the latest filings. The benefit to CoreWeave is pretty straightforward. Building AI data centers is extraordinarily expensive. There are few companies that have cash flows large enough to pay for substantial data center capacity outright. CoreWeave is using debt -- a lot of it -- to build its data centers and acquire capacity from existing infrastructure providers. Analysis by Yahoo Finance of nearly 5,000 mortgage lenders reporting 2024 loan information under the Home Mortgage Disclosure Act reveals the surprising truth: the lenders offering the lowest mortgage rates. Finance loan companies are forecast to post average ROE above 12% for FY2024, driven by digital lending growth and improved credit scoring models. These operational metrics may attract new institutional inflows.
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