Marketplace Lending

The growth of non-bank or peer-to-peer lending in recent years has led to the securitisation of a proportion of such loans, primarily in the US.
MPL (marketplace lending) deals form a sub-sector of the broader asset-backed securities, or ABS, market and have involved deals packaged into consumer/credit card ABS, RMBS, SME CLOs and student loan ABS.

  • DeFi securitisation breakthrough?

    Figure Markets launches first blockchain-based RWA credit facility

    Figure Markets has launched a US$15m senior lending facility, initially backed by home equity lines of credit (HELOCs) originated by Figure Lending, marking the first real-world assets (RWAs) financing on a decentralised finance (DeFi) marketplace. The facility enables institutional and retail investors to lend on equal terms in a fully decentralised system.

    “In a nutshell, the innovative aspect .......

    News Analysis 12 June 2025

  • SRT allocation

    US pension backs Arrowmark with $225m as SRT strategies gain traction with LPs

    The $42bn Iowa Public Employees’ Retirement System (IPERS) has backed the synthetic securitisation market at scale, with a $225m allocation to Arrowmark Partners' (Arrowmark) SRT strategy.

    The risk-sharing mandate, which begun with a $100m allocation and grew by an additional $125m last year, gives a rare glimpse into how institutional allocators are thinking about SRTs as part of their .......

    News 16 May 2025

  • Investor caution advised as solar ABS faces credit performance hurdles

    KBRA report highlights structural evolution and emerging risks in the solar ABS sector

    Credit performance risks and originator concentrations are coming into focus for the ever-growing solar ABS market. According to a new report from KBRA reviewing a decade of issuance in the sector, the market is entering into a more mature, if potentially more volatile, phase of development.

    Since the first rated transaction in 2016, solar ABS has .......

    News 9 May 2025

  • Sustainability first

    Ryan Jaskiewicz, president of structured finance at Climate First Bank, answers SCI's questions

    Q: Climate First Bank, the world’s first FDIC-insured bank dedicated to the environment and sustainability, recently announced its structured finance expansion, with you leading the effort. What motivated this move, and why now?
    A: From the beginning, the bank’s original business plan included a factoring and asset-based lending department. These offerings fall under what we now call the structured finance .......

    The Structured Credit Interview 16 December 2024

  • Flexible financing

    Apollo warehouse loan facility rated

    Further details have emerged regarding the transaction at the core of the recent strategic financing collaboration between Apollo Global Management and BNP Paribas (SCI 27 September). The resultant borrower vehicle, AGF WHCO 2-A Trust, entered into a senior secured revolving loan facility collateralised by warehouse loan obligations originated by ATLAS SP.

    “This trade is very .......

    News 8 October 2024

  • Latest SRTx fixings released

    SRT market sentiment re-adjusts after financial markets experienced significant volatility.

    The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. If August got off to an rough start (The S&P 500 lost more than 6% in the early days of August, erasing nearly US$3tn in market value), as fears mounted about an economic slowdown in the US, recession concerns dissipated as quickly as they arose. .......

    News 18 September 2024

  • Secret Revolution

    How will the US regional bank market develop?

    The US CRT market is slowly absorbing volumes and experiencing increased growth from unexpected players. Regional bank deals may herald how the jurisdiction will develop.

    Pinnacle Financial Partners and Valley National Bank entered the market last month with deals referencing mortgage and auto loan assets, respectively (SCI 29 July and 29 July). Both banks have below .......

    News Analysis 10 September 2024

  • New programme

    SCI catches up with Mike Strevens, head of structured guaran...

    Central to the British Business Bank’s debt financing activities is the ENABLE Guarantee programme, which aims to increase SME lending capacity among specialist UK banks. The guarantee is structured as an unfunded SRT with the most senior part of the SME reference portfolio protected and the first loss/junior portions and a vertical slice of the remaining portfolio retained by the originator. .......

    News Analysis 28 August 2024

  • Funded access

    Rated repacks on the rise

    (Re)insurer participation in SRT deals has historically been limited to unfunded and non-STS transactions, but they are increasingly finding innovative ways to participate in funded deals. One such recent innovation is the EMX Partners platform, which combines (re)insurer risk appetite with third-party funding.

    Since its launch in June 2023, EMX has effectively closed a debut transaction in Q3 2023 .......

    News Analysis 16 August 2024

  • Job swaps weekly: New Cayman structured finance chief for Maples

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Maples and Calder naming a new head of its Cayman Islands structured finance practice. Elsewhere, Scotiabank has staffed up for the launch of its new Houston-based mortgage capital markets business, while an ex-Stout md and co-lead of structured credit has taken up a C-suite role at Unifi Asset Management.

    Maples .......

    Market Moves 16 August 2024

  • BNPP set to acquire AXA IM

    Market updates and sector developments

    AXA has entered into exclusive negotiations to sell its asset manager AXA Investment Managers (AXA IM) to BNP Paribas for cash proceeds of €5.1bn. Under the terms of the proposed transaction, AXA and BNP Paribas would also enter into a long-term strategic partnership, under which BNP Paribas would provide investment management services to AXA.

    Additionally, AXA would receive .......

    Market Moves 1 August 2024

  • Latest SRTx fixings released

    SRT market sentiment highlights balanced trends and market conditions

    The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. While last month’s data points highlighted an incrementally better market sentiment overall, this month’s figures and calculations calculations generally came back wider than the previous month.

    SRTx Spread Indexes have widened across the board, with the European (+8.4%) and US (+8.3%) corporate segment .......

    News 11 July 2024

  • Northern green light

    Norwegian securitisation to benefit from 'plug-and-play' scenario

    The EEA’s long-awaited passage of the EU Securitisation Regulation should finally open the door for Norway’s securitisation market (SCI 14 June). Indeed, the jurisdiction is expected to hit the ground running. 

    Markus Nilssen, partner at BAHR, explains: “Banks here are exposed to higher capital requirements than elsewhere in Europe; for example, a 4.5% systemic risk buffer on .......

    News Analysis 28 June 2024

  • Private credit marketplace launched

    Market updates and sector developments

    Figure Technology Solutions has launched a first-of-its-kind blockchain-based multi-seller, multi-buyer marketplace for private credit loans. Called Figure Connect, the marketplace connects Figure’s capital markets buyer universe directly to Figure’s loan origination partners, with the aim of engendering liquidity by adding certainty of funding to loan originators and collateral composition to loan buyers.

    With Figure Connect, originators can receive .......

    Market Moves 12 June 2024

  • Job swaps weekly: Paul Hastings poaches private credit team

    People moves and key promotions in securitisation

    This week’s round-up of securitisation job swaps sees Paul Hastings poach a team of restructuring, private credit and special situations lawyers from King & Spalding. Elsewhere, Apollo-allied credit solutions provider Cadma Capital Partners continues to beef up its leadership team, while Kirkland & Ellis has lured a structured private credit lawyer to its debt finance group.

    Collectively, the .......

    Market Moves 7 June 2024

  • Five-point plan

    EU securitisation reform package mooted

    AFME has published a position paper that outlines a five-point plan to revive the securitisation market in the EU. Entitled ‘EU Securitisation back on track’, the paper describes the different ways that securitisation can be used as a tool to support EU growth and strategic objectives, identifies the regulatory hurdles that currently impede its impact and outlines a package .......

    News 6 June 2024

  • CFPB funding mechanism 'constitutional'

    Market updates and sector developments

    The US Supreme Court has issued its decision in the ‘Consumer Financial Protection Bureau v. Community Financial Services Association of America, Ltd’ case, holding that the CFPB's funding mechanism - as set forth in Title X of the Dodd-Frank Act - is constitutional. In evaluating the CFPB's funding structure against the Constitution's requirements, the Court found that the agency's appropriation mechanism .......

    Market Moves 17 May 2024

  • NCSLT found to be 'covered persons'

    Market updates and sector developments

    In a case involving the CFPB and the National Collegiate Master Student Loan Trust (NCSLT), the Third Circuit has found that statutory trusts used to handle securitisations are considered ‘covered persons’ for purposes of the Consumer Financial Protection Act (CFPA) and thus are subject to CFPB jurisdiction. According to a recent Cadwalader memo, this effectively means that the trusts would .......

    Market Moves 22 March 2024

  • Historic opportunity?

    MPL ABS set to benefit from credit card refinancing needs

    Marketplace loan ABS issuance in the US posted volumes of US$7.6bn last year, lower than the US$9.5bn of supply seen in 2022, as post-pandemic headwinds combined with macroeconomic pressures to drive underperformance across the sector. However, the market is poised to benefit from an influx of private credit money and the need to address historic levels of credit card .......

    News Analysis 22 February 2024

  • Inside job

    Internal ESG assessments and SPOs favoured

    Second-party opinions (SPOs) are growing in importance as climate credit risks and sustainable impact efforts continue to converge. At the same time, although rating agency ESG criteria have developed extensively alongside regulation, many securitisation market participants still rely on internal ESG performance assessments and scoring.

    “We treat a second-party opinion how we’d treat an opinion from any other .......

    News Analysis 26 January 2024

  • Sound the retreat

    No end in sight for bank lending deficit

    There are multiple and interlocking reasons why US banks have retreated from the loan market, and it is unlikely that these will be resolved at any date in the foreseeable future, according to Anna Kooi, financial services practice leader at Wipfli, the top 20 accounting firm.

    News 19 January 2024

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