Marketplace Lending

  • SYME securitisation underway

    Sector developments and company hires

    SYME securitisation underway
    Supply@ME Capital (SYME) reports that it has received offers, subject to contract, from a number of large, global institutional investors for a securitisation note issuance via StormHarbour, in order to monetise more than €300m of inventory (SCI 24 April). The company says it is currently analysing whether to syndicate this first securitisation issuance or work on .......

    Market Moves 11 September 2020

  • Negative rating actions tallied

    Sector developments and company hires

    Negative rating actions tallied
    Fitch reports that global structured finance negative rating actions - including downgrades, negative outlooks and rating watch negatives - reached an eight-year high in 1H20, reflecting weakening credit conditions due to the coronavirus pandemic-related recession. As of 30 June, 8% of the agency’s ratings had a negative outlook and 3% of ratings were assigned a RWN, compared .......

    Market Moves 2 September 2020

  • Doctrines disputed

    MPL principles continue to be challenged

    The ‘true lender’ and ‘valid when made’ doctrines of the marketplace lending industry continue to be disputed. While the state of Colorado last week reached a landmark settlement with online lenders Avant and Marlette, seven other states are challenging the FDIC and the OCC’s rulemaking in connection with these principles.

    Henry Morriello, partner, head of structured finance and .......

    News Analysis 27 August 2020

  • FDIC sued over Madden rule

    Sector developments and company hires

    FDIC sued over Madden rule
    The states of California, Illinois, Massachusetts, Minnesota, New Jersey, New York, North Carolina and the District of Columbia last week filed a lawsuit in the US District Court for the Northern District of California against the FDIC over its final rule clarifying that when state-chartered banks sell, assign or transfer a loan, an interest rate that .......

    Market Moves 25 August 2020

  • Seasoned QMs proposed

    Sector developments and company hires

    Seasoned QMs proposed
    The CFPB has issued a notice of proposed rulemaking (NPRM) to create a new category of seasoned qualified mortgages, with the aim of encouraging innovation and to help ensure access to a responsible, affordable mortgage credit market. To be considered a seasoned QM under the proposal, loans would have to be first-lien, fixed-rate covered transactions that have .......

    Market Moves 20 August 2020

  • Alternative CLO ETF announced

    Sector developments and company hires

    Alternative CLO ETF announced
    Alternative Access Funds (AAF) has announced the registration of its new AAF First Priority CLO Bond ETF, which is scheduled to become effective on 14 August and - if all approvals and launch objectives are met - begin trading in early September under the ticker ‘AAA’. The new ETF will focus its investments in US dollar-denominated .......

    Market Moves 7 August 2020

  • The perils of Covid CRE

    While CRE market has proved robust so far, help is still needed.

     

    The US commercial real estate market, and by extension the CMBS sector, has performed better recently than was thought likely a few months ago, but this does not mean all is well.

    The expiry of enhanced unemployment benefits today (July 31) plus ongoing economic dislocation due to a far from tamed pandemic suggests that things will get worse in the near term.

    One .......

    News Analysis 31 July 2020

  • AGs fight Madden rule

    Sector developments and company hires

    AGs fight Madden rule
    The attorneys general of California, Illinois and New York have filed a suit against the OCC’s ‘valid when made’ rule (SCI 1 June), which they claim would allow the federal government to pre-empt state usury laws and allow third-party entities “to prey on vulnerable” borrowers. The AGs note that the ability to pre-empt state usury .......

    Market Moves 30 July 2020

  • CLO equity defies predictions

    Sector developments and company hires

    CLO equity defies predictions
    US CLO equity cashflow performance is defying pessimistic predictions, according to a new report from JPMorgan CLO research analysts. As of 23 July reporting, US CLO equity on average paid 8% cashflow year to date (based on 842 tranches or circa 70% of the universe) and the report estimates 89% of equity is paying, compared to .......

    Market Moves 27 July 2020

  • Funding diversity

    Non-bank lending 'credit neutral' for SME ABS

    Moody’s suggests that the emergence of non-bank lenders – such as Paypal, Amazon and Klarna – in Europe is credit neutral for SME securitisations because although they broaden funding sources, this is at the expense of increasing borrowers’ overall debt burden. Additionally, while technology-driven underwriting facilitates quick credit decisions and transparency, the use of alternative data is relatively untested .......

    News 24 July 2020

  • ReoCo restructuring in the works

    Sector developments and company hires

    ReoCo restructuring in the works
    The Leviticus SPV issuer is set to implement a ReoCo structure, having appointed Credito Fondiario as the servicer to carry out all core ReoCo activities. The main purpose of the ReoCo is to encourage third-party acquisitions at auctions above auction base prices or to repossess real estate assets at otherwise empty auctions and re-sell them .......

    Market Moves 23 July 2020

  • Canadian CMBS forbearance highlighted

    Sector developments and company hires

    Canadian CMBS forbearance highlighted
    As of the June 2020 remittance reports for the Canadian conduit CMBS sector, 48 loans totalling C$559.9m were on the servicer's watchlist for coronavirus-related relief, according to DBRS Morningstar. In most of these instances, the servicer’s commentary confirmed that borrowers were granted loan modifications and/or forbearances.

    The majority of these loans are secured by retail .......

    Market Moves 22 July 2020

  • LCX platform expanded

    Sector developments and company hires

    LCX platform expanded
    LendingClub has expanded its LCX platform to make it easier for registered institutional investors to analyse, price and bid on loans at pre-issuance, down to the individual loan level. When it was first launched, LCX enabled the company to sell previously originated loans at, above or below par, from its balance sheet. For the first time, LendingClub .......

    Market Moves 13 July 2020

  • Consumer considerations

    Borrower relief aids performance

    The downward trend of 30-plus delinquency rates for US marketplace lending, auto and credit cards continued into May. Higher delinquent levels were mitigated by borrower relief programmes.

    Melvin Zhou, senior director, consumer ABS at KBRA, says: “30-plus delinquency rates for MPL, auto and credit cards were either stable or turning down in March and April, regardless of credit .......

    News 1 July 2020

  • Euro ABS 'game changer' recommended

    Sector developments and company hires

    Euro ABS ‘game changer’ recommended
    The European High-Level Forum (HLF) on the capital markets union (CMU) has published its final report, which proposes 17 inter-connected “game changers” – measures that the EU needs to implement to remove the biggest barriers in its capital markets. The European Commission stresses that completing the CMU has become particularly urgent in order to speed .......

    Market Moves 11 June 2020

  • Resolve and resilience

    Content sponsored by Ocorian

    James Maitland, regional head of Americas, Bermuda & Caribbean, and global head of capital market services at Ocorian, spoke to SCI about how resilience is benefiting the industry and his firm

    With the traditional office environment disappearing almost overnight and widespread personal restrictions, we have seen a smooth transition and incredible resilience both within our own firm and across the .......

    Talking Point 10 June 2020

  • Senators seek TALF expansion

    Sector developments and company hires

    Senators seek TALF expansion
    US Senators Jerry Moran, Martha McSally and Thom Tillis sent a letter to Fed chairman Jerome Powell and Treasury secretary Steve Mnuchin requesting that TALF be expanded to accept ABS backed by assets from all essential lending sectors as eligible collateral. The letter specifically urges personal instalment loans and non-agency RMBS be included as eligible collateral .......

    Market Moves 5 June 2020

  • Equity opportunities?

    Sector developments and company hires

    Equity opportunities?
    Despite a lack of visibility and liquidity and with cashflows likely to deteriorate further into upcoming July payment dates, there may be some opportunities in the CLO equity space, according to a new research report from JPMorgan.

    It finds that while NAVs remain negative, there has been some improvement between March lows and late 2019. Equally, cashflow .......

    Market Moves 1 June 2020

  • Marketplace merit

    Online lending resilient amid impairments

    The performance of online lending platforms remains resilient, despite coronavirus-related pressures. Indeed, dv01 data suggests that total loan payment impairments are showing signs of slowing down, after peaking earlier this month.

    Vadim Verkhoglyad, principal analyst at dv01, says: “It looks like total impairments peaked at last in the immediate term. There was a normal seasonal spike in early .......

    News 27 May 2020

  • Persistent opportunity

    Tor Trivers, md and head of the structured credit group at CDIB Capital, answers SCI's questions

    Q: How and when did CDIB Capital become involved in the structured credit market?
    A: CDIB Capital was established in 2006, as the private equity arm of China Development Financial, with the objective of deploying and diversifying the group’s proprietary capital outside of Taiwan. The firm has historically managed outside funds, but no credit-related assets until I joined in February .......

    The Structured Credit Interview 27 May 2020

  • Portfolio resilience

    Technology-driven investment gaining traction

    Pagaya has expanded to the US West Coast, beefing up its origination group. At the same time, the fintech firm is seeking opportunities in new asset classes and new partnerships.

    As part of its expansion, Pagaya has appointed Jason Hass as svp of originations and Mike Cannatella as vp of originations, in Phoenix and Los Angeles respectively. Hass will oversee .......

    News 14 May 2020
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