I'm not convinced by this story, but I do worry that if medallion prices drop and interest rates rise, TAXI has its NIM squeezed and does a lower volume of business. I.e. margins/revenues may not be sustainable.
This is basically a bank that lends long borrows short.
Any idea how well they've managed their interest rate exposure? If short term rates rise to more than 3.5%, there will basically be no NIM, and this will be hemorrhaging money, though it might improve the credit performance of the mezz loans.