A press release this morning states that Castlelake is buying up to $4 billion in loans from Upstart, including existing loans and forward loan flow.

finance.yahoo.com - Castlelake reaches purchase agreement

So we now know more about who is providing liquidity for loans going forward. The figure of 'up to $4 billion' is a bit higher than I would have expected, and it's causing a price bump in UPST stock. But we did know from the earnings release and call that the sale of a bundle of loans and an agreement for forward flow was in place.

From the press release:
"
Castlelake, L.P. ("Castlelake"), a global alternative investment manager with 17 years of experience investing in asset-rich opportunities today announced that Castlelake, together with a co-investor and minority partner Eltura Capital Management, has reached an agreement to purchase up to $4 billion of consumer installment loans from Upstart (NASDAQ: UPST), an artificial intelligence (AI) lending marketplace. The purchase agreement consists of the acquisition of a back book of loans and a forward flow arrangement...

John Lundquist, Partner, Specialty Finance at Castlelake: "Against a backdrop of increasing economic uncertainty, Castlelake is committed to helping support Upstart's mission of unlocking mobility and opportunity for millions of U.S. consumers."

"Upstart is excited to collaborate with a firm that we believe is an experienced and dependable capital provider through economic cycles," added Sanjay Datta, CFO of Upstart. "Castlelake's support will help ensure we have the resources to continue scaling the deployment of our AI models and expanding access to affordable credit for all consumers."
"