Insights

Here’s why the Wisr (ASX:WZR) share price is up 5% today

The Wisr share price is on the rise after the company announced it’s achieved a AAA credit rating for its asset-backed securities.
The post Here’s why the Wisr (ASX:WZR) share price is up 5% today appeared first on The Motley Fool Australia. –

The Wisr Ltd (ASX: WZR) share price jumped by almost 10% this morning after the company announced an AAA rating for its asset-backed securities (ABS). Wisr shares have since pulled back slightly and are currently sitting at 28 cents, up 5.56%.

Wisr is an Australian non-bank lender offering competitive, personalised consumer loans.

The company offers an innovative feature to round up purchases to the nearest dollar, with the difference going towards your debt, Wisr loan or savings account. The rounding effect pays off debts faster, meaning less interest you’ll have to pay over time.

WISR share price higher on ratings update

Wisr proudly announced the pricing of its $225 million of ABS. The WISR Freedom Trust 2021-1 is the company’s first ABS transaction, with strong investor interest seeing all tranches significantly oversubscribed.

Global bond credit rating agency Moody’s rated the company’s top tranche as AAA, the highest rating with the lowest credit risk. The AAA rating signals the company is well-placed to repay short-term debt.

Wisr touted the rating as “exceptional for an inaugural issuer” and “providing strong external validation of the quality of the Wisr business operations and the underwriting platform”.

Management commentary

Wisr Chief Financial Officer, Mr Andrew Goodwin commented on the exceptional result and strong investor demand:

This transaction signifies a coming of age for Wisr as the Company commences access to the global debt capital markets. We are extremely pleased with the market appetite. It’s a very strong testament to the quality of the Wisr loan book and overall business. The strong demand and pricing achieved across all tranches reflects that investors continue to seek high quality assets originated by high quality companies

There is a huge opportunity in front of us to grow market share in-line with our risk appetite and this
transaction is an important and strategic step for Wisr. We’re in a prime position to aggressively grow our
revenue with significant room to scale towards our medium-term target of a $1B loan book. We have the
right ingredients to deliver a highly profitable, differentiated business that is well capitalised and with
market leading metrics

The Wisr share price so far in 2021

The Wisr share price has increased an impressive 50% year-to-date. This is despite the broader S&P/ASX 200 Info Tech Index (ASX: XIJ) sliding 18% this year.

Other tech-enabled financing businesses, such as Moneyme Ltd (ASX: MME), have failed to deliver meaningful returns.

The Wisr share price has likely been supported by strong financial and operational updates including a 275% increase in 3Q21 revenues announced on 29 April.

The company’s record 19 quarters of back-to-back growth, announced on 14 April, also shored up the Wisr share price.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

More reading

Why the Wisr (ASX:WZR) share price is rocketing 6%

The post Here’s why the Wisr (ASX:WZR) share price is up 5% today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!