PeerIQ has released their latest marketplace lending securitization report for the third quarter. Total issuance for the quarter was $2.6...
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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
The securitization market in marketplace lending continues to strengthen as more lenders utilize this capital route; the LendIt USA 2017 panel on securitization talked through the market conditions and what it takes to do a deal; the panel went through the challenges faced in 2016 and how the industry has come back looking stronger; the industry has gotten back to the fundamentals which are a cornerstone of securitization deals; the vast majority of deals are made up of unsecured consumer loans, but other asset classes including mortgages, student loans and auto have been coming to market; topics touched upon also included barriers to success, vertical versus horizontal interests and the effects of risk retention on the overall market. Source
Securitization was a bright spot in online lending in 2016 with significant securitization growth; Ram Ahluwalia's firm PeerIQ provides data and analytics services to issuers, investors and originators; helps stakeholders price, value, exchange and structure risk in securitizations; Ram Ahluwalia talks about themes relating to securitization growth; year over year growth was 59% from 2015 to 2016 with over half of loans being funded via ABS; securitizations are also becoming increasingly rated by ratings agencies; originators have benefited by accessing lower cost of capital providers such as pension funds, banks and insurance companies; major online lending platforms have also launched their own branded securitization shelfs; Ahluwalia also speaks about the challenges of the securitization market and answers audience questions. Source