Goldman's first credit card is 'highly sensitive' to rising net charge offs, and the bank will begin to lose money if losses reach about 8%, Carcache wrote.
The Apple Card from Goldman Sachs will be "highly sensitive" to rising net charge offs, and thanks to thin margins, the bank will start to lose money if losses reach about 8%, according to analysts led by Bill Carcache.
The much-hyped credit card, which Goldman began to make available last week, has no fees, the industry's lowest interest rate range for comparable cards, and a mandate to approve as many iPhone users as possible, according to a report published Wednesday from analysts led by Bill Carcache. In his analysis, which assumes that Goldman spends $350 to acquire new users, the bank will begin to break even on a customer after four years.flashing a recession
Goldman's product is "highly sensitive" to rising net charge offs, and the bank will begin to lose money if losses reach about 8%, Carcache wrote. In the last recession, net charge offs surged in 2008 and peaked at above 10% in 2010. Goldman declined to comment on the research note.
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