PeerIQ highlights the US Fed's "Quarterly Trends for Consolidated US Banking Organizations" report and notes bank sector earnings and banking ROE in the 7% to 9% range; the weekly newsletter also analyzes funding costs and liquidity of publicly traded nonbank lenders Elevate, OnDeck, OneMain and Enova; the chart above includes the funding mixes of each company. Source
PeerIQ has released its monthly marketplace lending update for October; focus of the report is on the 2017 forecast for marketplace lending securitizations; PeerIQ forecasts 47% year-over-year growth ($11.3 billion) in new ABS issuance with 52% growth in new originations for its base case estimate; sees high demand continuing for securitized products however institutional investors will likely be more interested in shorter duration loans to manage interest rate risk as US rates are expected to rise; PeerIQ reports continued support from rating agencies with high ratings; expects leading securitization issuers in 2017 to be SoFi, Avant and Marlette. Source
This week's PeerIQ industry update focused on the OCC's special purpose bank charter and a trio of new securitization deals; the OCC charter is beginning to face some pushback from lawmakers who feel the OCC may be moving along too quickly; Marlette is looking to close their MFT 2017-1 securitization on March 23rd, the deal was $257.44 million but has upsized to $304.47 million; SoFi has a new offering, SoFi 2017-B, led by Bank of America and Deutsche Bank for $461 million; Avant is also heading to market with a $300 million securitization being led by Credit Suisse. Source
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
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 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
PeerStreet has partnered with Betterment to provide increased access to its platform data for investors through the Betterment service; with the new partnership investors can now view their PeerStreet positions on the Betterment dashboard; the partnership is facilitated by data integration from Quovo. Source
Online real estate lending platform PeerStreet has partnered with Wealthfront; PeerStreet will integrate with Wealthfront's Path offering; the integration has been facilitated by Quovo and will allow PeerStreet customers to view their PeerStreet investments holistically within their entire Wealthfront investment portfolio. Source
