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  "documentTitle": "Credit Acceptance Corporation (CACC)",
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      "text": "Lower defaults: Better underwriting at origination means fewer loans go bad. A 100bps improvement in loss rates flows almost entirely to the bottom line. Lower rates: As modeled default risk falls, CACC can price more competitively. Faster approvals: Sub-2-second dealer approvals are already live. Wider moat: A platform that approves faster and prices better becomes indispensable to dealers.",
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      "text": "The investor day Hegde has not yet held is a free option sitting in the stock. When he stands up and presents a technology roadmap to a room of analysts who have been modeling this as a pure lending business, the re-rating will be immediate.",
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      "text": "Hegde is not doing this as a marketing exercise. The KPIs are already moving. Twelve months of measurable improvement are visible before the AI thesis is fully underway. When it is, the earnings trajectory changes — and the multiple changes with it.",
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      "text": "CACC just priced securitizations at SOFR + 140bps — their lowest cost of funds in years. Institutional fixed-income investors who have access to every piece of disclosed data on this business are pricing CACC's paper as near-investment-grade quality. The people with the most information are the most bullish. The equity bears are fighting the bond market.",
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      "text": "The market is pricing CACC as a legacy lender. It should be pricing it as a legacy lender becoming a technology platform. Here is the difference in economics:",
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