SoFi and Affirm Drop as Rising Yields Pressure Balance-Sheet Lenders
Rising Treasury yields are pressuring balance-sheet lenders like SoFi Technologies (NASDAQ:SOFI) and Affirm Holdings (NASDAQ:AFRM), with their stocks falling by 4% and 5%, respectively. The 10-year Treasury yield hit a one-year high of 4.79%, increasing funding costs for these companies that rely on securitization facilities to fund loan books. In contrast, Robinhood Markets (NASDAQ:HOOD) saw only a minor decline due to its transaction-fee model being less sensitive to interest rate changes. The broader market was relatively stable compared to the fintech sector's sharp drop. The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust (QQQ) fell by just 0.66% and 1.16%, respectively, indicating that today’s sell-off is concentrated in rate-sensitive credit lenders rather than the overall market. SoFi's recent financials showed a direct impact from rising rates, with management noting a 37 basis point increase affecting loan fair-value adjustments during Q2 2026. Affirm faces even greater pressure due to its shorter-duration consumer loans and higher cost of funds at 5.8% in fiscal Q3 2026.
Topics: Affirm balance-sheet lenders fintech stocks Robinhood SoFi Treasury yields