Z1P -11%: fell despite talking up their prospects and saying that they had enough capital to see them through to cashflow breakeven in FY24 which is a positive, however more interesting was the point that a 25bps increase in base rate increased costs of funds on a per transaction basis by 2bps. Margins are already slim here + rising rates increases costs on one side and also hurts bad debts on the other. We’ve got this totally wrong unfortunately, with our only solace being we cut if from our Flagship Growth Portfolio and reduced the position size in our Emerging Companies portfolio nearer ~$6, but overall, it’s been a terrible position.
MM is concerned about Zips operating metrics as rates rise
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