Marketplace Lending

  • Marketplace deals readied, with innovations

    Kabbage is marketing its first marketplace loan ABS of the year and its second since inception. Meanwhile, SoFi is in the market with its second consumer loan ABS - SoFi Consumer Loan Program 2017-2 - backed by US$343m of consumer loans and comprising several elements that differ from its previous securitisation.

    Dubbed Kabbage Asset Securitization Series 2017-1, Kabbage's transaction is .......

    News 21 February 2017

  • Disclosure recommendations released

    SFIG has published the first edition in a series of papers aimed at supporting the responsible growth of securitisation in the marketplace lending sector. These green papers are a product of the association's marketplace lending committee best practices initiative and are released with the aim of stimulating further debate and discussion.

    SFIG's marketplace lending committee currently includes 250 individuals, representing .......

    News Round-up 3 February 2017

  • High prepays for SBOLT

    Moody's reports that the performance of Small Business Origination Loan Trust 2016-1, the first European securitisation of marketplace loans, has so far largely been in line with its initial expectations. Indeed, the transaction's sponsor - Funding Circle - has had to provide minimal support, repurchasing just 0.33% of loans.

    "Loan-level defaults are in line with our expectations, at 2.20% of .......

    News Round-up 27 January 2017

  • Holding steady

    Partnerships, ABS to help marketplace lending stabilise

    The marketplace lending sector endured several tests to its model at the start of 2016, but managed to regain investor confidence by year-end, reflected in a resurgence of MPL ABS issuance. While 2017 could be defined by consolidation, partnerships and greater securitisation activity, questions remain over true lender status, regulatory oversight and how firms will adapt in a rising interest .......

    News Analysis 12 January 2017

  • Law firm nabs SF vet

    Norton Rose Fulbright has hired Patrick Dolan as a partner to the firm, joining from Dechert. He focuses his practice on ABS and MBS - often with innovative structures - representing warehouse lenders, issuers, underwriters, investors and multi-seller commercial paper conduits. Dolan has worked on financings and securitisations of various asset types, including PACE bonds, tax liens, structured settlements, marketplace .......

    Job Swaps 4 January 2017

  • Cash versus synthetic weighed

    Balance sheet securitisations - whereby balance sheet relief is achieved via true sale - are gaining traction in Europe (SCI 25 August 2016). The different motivations for executing a cash versus a synthetic capital relief trade were discussed recently at SCI's Capital Relief Trades Seminar.

    "Generally, we've come to see balance sheet securitisations get far more relevant and important recently," .......

    News 4 January 2017

  • Property prospects

    Hiring remains flat, but CMBS up-tick possible

    CMBS could provide a hiring boost in the US in 2017, while structured finance recruitment is likely to remain mostly flat globally. In the UK, senior hires are few and far between, but banks are still recruiting junior executives to develop smaller structuring teams.

    Chadrin Dean, president and managing partner for Sandford Rose Associates,
    Integrated Management, says that over the last .......

    News Analysis 23 December 2016

  • MPL ABS 'compares well' in 2016

    Despite significant turbulence earlier in the year, marketplace lending ABS has maintained steady growth and better or similar performance than other areas of the consumer loan ABS sector, according to JPMorgan ABS analysts. They add that the marketplace lending ABS sector has also been one of the fastest growing in ABS, starting with US$3.3bn in 2013 from three programmes to .......

    News 20 December 2016

  • Lower credit MPL deal prepped

    SoFi is readying its thirteenth rated student loan securitisation, which is expected to be sold in a privately negotiated transaction. The US$130.66m ABS, dubbed SoFi Professional Loan Program 2016-F, is backed by refinanced student loans originated through its online platform and is unusual in that a substantial proportion of the loans have lower credit scores than its previous transactions.

    Moody's .......

    News Round-up 19 December 2016

  • Inaugural online RMBS prepped

    SoFi is in the market with its inaugural RMBS transaction, dubbed SoFi Mortgage Trust 2016-1. The US$168.79m deal comprises 36 classes of mortgage-pass through certificates backed by prime jumbo mortgage loans originated via SoFi's online lending platform.

    Fitch and KBRA have issued preliminary ratings on the transaction, with both agencies rating the US$84.11m class 1A6, the US$28.03m class 1A8, the US$11.81m .......

    News 13 December 2016

  • SLABS to see strong performance

    A major theme in the US private student loan market in 2017 will be the continued origination and securitisation of loans with strong credit quality from new marketplace lenders that specialise in the refinancing or consolidation of loans using online platforms, Moody's says. The agency notes that the credit quality of new private student loan ABS from traditional lenders will .......

    News Round-up 9 December 2016

  • Pairing up

    ABS, bank partnerships to lift marketplace lending

    Marketplace lending and fintech will play an increasing role in the future of the securities market, according to US SEC chair Mary Jo White. Speaking at a recent SEC fintech seminar, White praised the benefits of innovative financial technologies, but outlined the need for relevant regulatory guidelines to protect investors and wider participants.

    White stated that "fintech innovations have the .......

    News Analysis 8 December 2016

  • Reputation management

    MPL ABS growth likely, subject to strong macroeconomics

    Marketplace loan ABS performance will generally remain stable into 2017, with loan originations and issuance growing, according to Moody's. The agency adds that the marketplace lending sector will use 2017 as a year to rebuild its tarnished reputation after a series of negative developments in 2016.

    The firm points out that these challenges could, however, still further expose platforms' shortcomings .......

    News Analysis 6 December 2016

  • MPL disclosure paper published

    SFIG has released a green paper on the responsible growth of securitisation in the marketplace lending sector, focusing initially on sufficient data disclosure. The paper seeks to identify a framework of market standards and recommends best practices through an open discussion among a broad cross-section of market participants.

    The organisation has also established a marketplace lending committee made up of 250 individuals .......

    News Round-up 2 December 2016

  • Developing marketplace

    Key themes discussed as marketplace lending sector evolves

    Representatives from Orchard Platform, MountainView and Global Debt Registry joined SCI over the summer to discuss marketplace lending developments. This Q&A article highlights some of the main talking points from the session, including the importance of thorough due diligence and data verification, regulatory developments and the prospect of market consolidation. The full webinar can be viewed here.

    Q: .......

    Talking Point 28 November 2016

  • French firm makes senior hire

    Cartesia has hired Jérôme Anglade as partner and md. He will be in charge of the CLO and structured credit business, working alongside Tanguy Boullet and Hadrien Carré.

    Anglade has 20 years' experience in structured credit, including 11 years at Morgan Stanley in London, where he was responsible for the European structured credit business. He also has experience in marketplace .......

    Job Swaps 28 November 2016

  • Structuring alpha

    Robert Allard, founding partner and ceo at Firebreak Capital, answers SCI's questions

    Q: How did Firebreak Capital become involved in the securitisation market?
    A:     Firebreak Capital is categorised as a private debt fund, but this means different things to different people. Our background is in structured products (including securitisation) and we're seeking to employ this skill-set across the private debt universe. A more appropriate label for the firm is a structured private debt .......

    The Structured Credit Interview 18 October 2016

  • Scaling up

    Platforms eager to issue further marketplace ABS

    Funding Circle and Zopa intend to tap the securitisation market on a regular basis, following their debut transactions this year. Both platforms recently discussed their experiences issuing ABS at marketplace lending conference Lendit and expressed enthusiasm for pursuing the funding method further.

    Funding Circle issued its inaugural SBOLT deal in April, backed by SME loans originated through its online platform. .......

    News Analysis 14 October 2016

  • What's in a name?

    Classification confusion constraining MPL ABS

    Uncertainty over how to define marketplace loans - as securities or whole loans - is restricting securitisation of the assets. However, the US SEC could be considering classifying marketplace loans as securities, signalled by the announcement of its upcoming fintech forum.

    Unresolved regulatory issues continue to plague the marketplace loan sector, with issues over true lender status and the Madden .......

    News Analysis 7 October 2016

  • Rated UK MPL ABS prepped

    Zopa is in the market with its inaugural rated consumer loan securitisation, which is the first rated securitisation of UK marketplace consumer loans. The £138m deal, dubbed Marketplace Originated Consumer Assets 2016-1, is backed by unsecured consumer loans originated via Zopa's marketplace lending platform.

    Moody's has assigned provisional ratings of Aa3 to the £114m class A notes, A2 to the .......

    News Round-up 21 September 2016

  • Secondary education

    Liquidity, accurate valuations could stabilise sector

    The first half of 2016 brought several challenges for the marketplace lending industry in the US, with the Q2 results of many platforms confirming falling origination volumes and revenues, largely due to a pullback from investors. While this may raise wider concerns about the viability of the sector, some participants believe that the reason for the downturn is not a .......

    News Analysis 29 August 2016
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