PeerIQ covered earnings season for the banking sector, the reported deal of JPMorgan's student loan portfolio to Navient and the plans of China Rapid Finance to go public on the NYSE; they also dug deep into credit card receivable securitization deals; they compared delinquency and loss levels of credit card deals to that of installment loan deals; comparing MPL ABS and credit card ABS is not exact, credit card deals are revolving that re-invest principal and interest over time; delinquencies for credit cards reached all time lows in 2016 while the unsecured installment loans have had a pattern of higher losses; peak delinquencies in a stress period for credit cards is around 8% while the installment loans are around 12%; now that PeerIQ has partnered with TransUnion look for more comparable data trends in future updates. Source
News Roundup
This page contains an archive of the Global Newsletter summaries and the weekly fintech news roundups.
Every day the Fintech Nexus news team scours the globe for the most important stories of the day to include in our daily newsletter.
Then every Saturday we bring you our weekly news roundup of the top 10 fintech stories of the week with commentary from Peter Renton.
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This week's PeerIQ update focused on news from the FOMC, a $50mn Prosper fundraise led by FinEx and highlights from ABS East; they also provide a recent update on securitization deals, trends in personal loan originations and a bank partnership between JP Morgan Chase and Bill.com. Source.
PeerIQ's weekly update covers the recent partnership by Acorns and PayPal, household debt in the US and a new Bain survey that shows people are more willing to try fintech products; LendingClub filed its latest securitization deal for $330mn and Kroll upgraded all three classes of the Earnest EARN 2016-B deal; they also took a deep dive on TransUnions recently released fintech study. Source.
In PeerIQ’s weekly industry update they cover the IMF’s recent global growth forecast being raised and the recent securitization deals in online lending; while global growth is up the IMF also pointed out that a third of banks by assets might struggle to attain profitability; recent securitization deals from Marlette Funding and SoFi highlight a busy quarter in the sector; the newsletter also takes a deep dive into bank earnings for JP Morgan, Citi, Bank of America and Wells Fargo. Source.
In their weekly industry update PeerIQ covered the most recent securitization deals and the acquisitions by student loan servicers Nelnet and Navient; Avant filed AVNT 2017-B worth $232.648mn, a consumer loan ABS transaction; PeerIQ took a close look at Mosaic whose most recent ABS transaction was heavily oversubscribed, with over $1.7 Bn in orders for a $307.5mn deal. Source.
This week's industry update from PeerIQ focuses on some good fundraising news for the market; OnDeck extended their credit facility with Deutsche Bank to 2019 and increased the borrowing capacity to $214 million; SoFi is looking to launch a risk retention fund soon and their most recent securitization deal worth $461 million deal was rated by S&P, Moody's and DBRS; Marlette closed on their third securitization deal, MFT-2017 1, which was their largest transaction; the deal was originally set for $257 million but was oversubscribed and priced at $333 million on Friday; PeerIQ listed a few other interesting items of note on the deal; the deal pricing of this transaction is tighter than past Marlette securitizations and they are using a step function for cumulative net loss triggers. Source
The March MPL Loan Performance Monitor from PeerIQ discusses recent rate increases to riskier borrowers for both Lending Club and Prosper; PeerIQ described the rate increases at Prosper to be mild in comparison to Lending Club, additionally we should see more rate increases in 2017 as the Fed looks to raise rates a few times; the MPL Loan Performance Monitor also takes a look at delinquency and charge-off rates for 36 and 60 month products for both lenders. Source
PeerIQ's weekly newsletter provides insight from a week in Washington, D.C. beginning with the SEC's Fintech Forum on Monday, November 14; Ram Ahluwalia participated as a panelist providing an industry perspective on the "Capital Formation" panel; newsletter also provides details on potential terms from the OCC in their fintech charter and highlights three bills affecting fintech; PeerIQ also discusses the effect of capital and liquidity rules on asset-backed securities from banks. Source
PeerIQ's Weekly Industry Update notes this week's SFIG Vegas 2017 conference on structured finance; PeerIQ's Ram Ahluwalia will be moderating a panel titled, "The Outlook for Securitization and Marketplace Lending"; on February 26, PeerIQ also released an industry white paper titled, "Data Standards and Best Practices" which details industry standardization of data and discusses the importance of data transparency; at the SFIG 2017 event on Monday the firm announced a new data partnership with 1010data. Source
The Online Lending Policy Institute has been formed to provide research and education on fintech and marketplace lending; Federal Reserve Governor Daniel Tarullo has resigned which is favorable for financial services deregulation as Tarullo was a driving force for higher capital standards; the PeerIQ weekly update also provides more details on President Donald Trump's executive order regarding financial services deregulation. Source