Marketplace Lending

  • 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

  • Modifications up

    MPL impairments bucking the trend

    US marketplace loan payment impairment rates have increased amid the coronavirus fallout but remain below the changes in unemployment figures. Recent dv01 performance data also shows that modifications comprise over 70% of all payment impairments, thereby limiting near-term defaults.

    Indeed, new modifications outnumber new delinquencies and dv01 expects this trend to continue. The majority of modifications are a .......

    News 5 May 2020

  • Negative outlook for asset performance

    Sector developments and company hires

    Negative outlook for asset performance
    Fitch is updating its rating assumptions for all global structured finance sectors to incorporate the economic impact of the coronavirus and related mitigation measures. The agency expects the global pandemic to result in an unprecedented economic contraction and while the rating effects will vary meaningfully across asset classes, asset performance deterioration is anticipated in almost .......

    Market Moves 6 April 2020

  • Basel 3 implementation deferred

    Sector developments and company hires

    APAC fund launch
    Pierfront Capital Fund Management has been awarded its capital market services license for fund management by the Monetary Authority of Singapore. It has also announced the first close of the Keppel-Pierfront Private Credit Fund, which aims to provide debt solutions to corporates or projects predominantly in the real asset sectors of the Asia-Pacific region. Sponsored by Pierfront .......

    Market Moves 30 March 2020

  • Testing times

    MPL platforms addressing coronavirus impact

    As an expansion-era product, marketplace lending securitisation is expected to be tested for the first time by the Covid-19 fallout. Joseph Cioffi, partner and chair of the insolvency, creditors’ rights and financial products practice group at Davis & Gilbert and author of Credit Chronometer, tells SCI how platforms are preparing for a potential recession.

    Q: Why and how .......

    Talking Point 27 March 2020

  • Native blockchain securitisation debuts

    Sector developments and company hires

    Ares facility inked
    Non-Standard Finance (NSF) has entered into a new six-year securitisation facility totalling £200m, at pricing that is more favourable than its existing facility and is expected to result in a pre-tax saving of approximately £1m in the year ended 31 December 2020. On satisfaction of certain conditions, the new facility – which is provided by credit funds .......

    Market Moves 13 March 2020

  • AXA IM creates two key units

    Sector developments and company hires

    AXA IM restructuring
    AXA Investment Managers intends to create a new €137bn business unit - called AXA IM Alts - as part of a wider restructuring of the business into two key divisions, with the aim of creating a simplified and more focused organisation. The other new business unit would be known as AXA IM Core. Under the leadership of .......

    Market Moves 11 March 2020

  • GM withdrawal from Aussie autos 'credit negative'

    Sector developments and company hires

    CMBS analytics platform
    Thetica Systems has launched a web platform for CMBS pricing and analytics tools, which can be used to quickly analyse bid lists, gather market colour and perform deep analysis. Clients control the requirements for access to inputs and calculations.

    EMEA
    PGGM recently promoted Youssef Sfaif to the position of director, credit and insurance linked investments. The role .......

    Market Moves 25 February 2020

  • MPL acquisition to achieve 'regulatory clarity'

    Sector developments and company hires

    Acquisition
    LendingClub is set to acquire Radius Bancorp and its wholly owned online subsidiary Radius Bank in a cash and stock transaction valued at US$185m. The combination of Radius and LendingClub is designed to create a digitally native marketplace bank at scale, with the power to deliver an integrated customer experience. The aim is to enable consumers to both pay less .......

    Market Moves 19 February 2020

  • Secured versus unsecured

    Early-stage MPL delinquencies predictive of charge-offs

    Given that a secured loan lender has the right to seize the collateral securing the loan to recoup borrowed funds, logically the borrower should be should incentivised to repay the loan. To gauge how significant a motivating factor this is, KBRA analysed loan-level performance data on 8.7 million auto loans and 7.2 million marketplace consumer loans from multiple originators, .......

    News 14 February 2020

  • Bespoke service

    Emma-Jane Fulcher, founder of Grovewood Capital Consultancy, answers SCI's questions

    Q: How and when did Grovewood Capital Consultancy become involved in the securitisation market?
    A: I founded Grovewood Capital Consultancy at the end of last year (SCI 23 December 2019). In my previous role as head of structured finance at ARC Ratings, more and more clients were asking for structuring advice during the ratings process – which, of course, .......

    Provider Profile 23 January 2020

  • Landmark quake bond closed

    Sector developments and company hires

    DLT legal analysis published
    ISDA, Clifford Chance, R3 and the Singapore Academy of Law have published a new whitepaper that provides analysis on the legal issues relating to the use of smart derivatives contracts on distributed ledger technology (DLT). Given the inherent uncertainty about where data, assets and even counterparties are located in a DLT environment, a key question is how .......

    Market Moves 13 January 2020

  • MPL ABS breaches liquidity covenant

    Sector developments and company hires

    EMEA
    BTIG has established a fixed income credit division in London to service clients across EMEA. The team is led by Michael Carley, md and head of European fixed income credit, who joined BTIG in New York last year. Bobby Dziedziech (director and senior high-yield and distressed trader), Laurent Jastrow (director and senior distressed sales trader and sourcing specialist), Noah .......

    Market Moves 8 November 2019

  • Branching out

    UK marketplace lender brings US deal

    Funding Circle Holdings is in the market with its first ABS collateralised by loans made to SMEs incorporated in the US. Dubbed Small Business Lending Trust 2019-A, the US$198.45m transaction is backed by 1,394 loans originated via the Funding Circle online lending platform, secured by a lien on the assets of each borrower and a personal guarantee.

    In .......

    News 7 August 2019

  • New deals surge

    Quarterly SCI data update

    2Q19 saw a surge in new issuance volume across securitisation markets either side of the Atlantic. The second quarter typically sees an uptick over the previous quarter (SCI 11 April 2019), but this year's boost in European volumes was a reflection of greater regulatory certainty as the new STS rules bedded in and pent-up supply met pent-up demand.

    .......

    News Analysis 10 July 2019

  • Pre-summer rush

    European ABS market update

    Activity levels are currently high across the European ABS/MBS and CLO markets and that looks set to continue.

    “It’s very busy in both primary and secondary,” confirms one trader. “It feels like the usual rush before the summer holidays, but we’re also feeling the effects of pent-up issuance from the quiet first quarter. We’re seeing lots of new .......

    Market Reports 3 July 2019

  • MPL ABS dissected

    Rating agencies clash over sector

    US marketplace loan (MPL) ABS transactions have seen steadily declining credit enhancement (CE) that isn’t justified by performance on the transactions or other factors, according to a recent comment from Fitch. Coming out in defence of the sector, KBRA says that it has seen considerable improvements over a number of years and that this has led to widespread acceptance among .......

    News 29 May 2019

  • Lender charged for overstating returns

    Sector developments and company hires

    CRT analytics
    dv01 has launched a credit risk transfer market surveillance offering, which adds US$1.8trn of Freddie Mac STACR and Fannie Mae CAS securitisations to its loan-level data analytics platform. The service allows investors to analyse historical performance of CRT deals individually or combined, perform whole market analysis and run cashflow scenarios.

    MPL platform charged
    The US SEC has ordered Prosper Funding .......

    Market Moves 23 April 2019

  • BWIC boom

    Quarterly SCI data update

    The first quarter of a year is usually quieter than the previous quarter and, for the most part, 1Q19 saw reduced activity over 4Q18 (SCI 24 January 2019). The notable exception was CLO secondary markets, where BWIC volumes boomed for the second quarter in a row, according to SCI data.

    .......

    News Analysis 11 April 2019

  • Positive sentiment?

    European ABS market update

    European ABS primary issuance is gaining momentum, as the second quarter begins. Indeed, the variety of deals on offer appears to be boosting sentiment, with a newly announced marketplace lending securitisation joining the re-performing and non-conforming RMBS in the pipeline (see SCI’s deal pipeline).

    “The European primary market is a lot busier than it was even a .......

    Market Reports 2 April 2019

  • Symbiotic relationship?

    Marketplace lending enters the mainstream

    The online lending sector has become mainstream, forcing marketplace platforms to better differentiate the experience they offer to borrowers. At the same time, the entrance of new players – such as Goldman Sachs’ Marcus offering – is putting pressure on incumbents to remain competitive and relevant. While online platforms were previously largely expected to replace – or at least .......

    News Analysis 27 March 2019
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