-
CommonBond, a marketplace lender specializing in private student loans, announced its first securitization Wednesday.
June 10 -
Investors lined up to buy five times more than the amount of bonds available in a securitization of loans originated on the Prosper Marketplace that BlackRock sold this week.
February 4 -
The institutionalization of peer lending is pulling banks into more competitive bidding for loans as originators expand into newer and untested asset classes, such as online real estate loans.
October 7
CircleBack Lending, an online marketplace that offers installment loans to consumers, has completed its first securitization deal, the Boca Raton, Fla., firm said Friday.
The $106 million securitization was structured and sold by the investment banking firm Jefferies LLC, according to a CircleBack press release.
The deal represents the partial realization of plans, announced last September, for Jefferies to bundle and sell up to $500 million of bonds linked to CircleBack loans.
"This successful bond offering marks the first of what we will be many more to come with Jefferies and others," CircleBack Chief Executive Officer Michael Solomon said in the press release.
[Coming this November:
CircleBack offers fixed-rate installment loans of $3,0001 to $35,000. Annual percentage rates on 36-month loans range from 6.63% to 36%, depending on the borrower's creditworthiness, according to the company's website. CircleBack's loans are purchased by institutional investors.
As the so-called marketplace lending industry has shifted away from its origins as a way for individual investors to be matched up with specific borrowers, securitization has become a more popular way of funding loans.
Securitization deals involving loans from Prosper Marketplace, CommonBond and Social Finance have been announced in recent months.
