PeerIQ is pleased to release the PeerIQ MPL Securitization Tracker (1Q2016). The quarter saw six deals totaling $1.5 billion in issuance, representing strong 20% growth in cumulative issuance, though down from the $1.9 billion across 9 deals we saw last quarter—a result not surprising in light of the capital markets jitters experienced in January. The steady performance and strong finish reveals that securitization remains a vital funding source for the sector.
Regulatory themes punctuated headlines this past week. The Financial Stability Board – comprised of central bankers, regulators, and finance ministry officials from the G20 – convened in Tokyo to examine FinTech regulation.
Here in the US, MetLife successfully sued FSOC in an attempt to shed the designation of ‘systemically important’. Other institutions, notably GE, hope to eliminate SIFI as well. GE has reduced assets from $549 Bn to $265 Bn, and exited consumer lending businesses in the face of stiff regulatory capital, liquidity, and supervisory burdens.
The Treasury Department’s OCC division is considering new regulations for banks and FinTech to “strike the right balance” between risk and innovation.
SEC Chair Mary Jo White delivered a keynote titled ‘Protecting Investors in an Innovative Marketplace.’ The Chair highlighted the need for transparency to “enable [investors] to make informed investment decisions – both at the time of investment and on an on-going basis.” The Chair cited a need for increased disclosures regarding underlying investments, borrower statistics, and platform risk and lending models.
We couldn’t agree more. We look forward to LendIt where we will discuss how we work with leading participants to promote transparency, standardization, and liquidity in this rapidly growing market.
- PeerIQ CEO, Ram Ahluwalia, will be participating in the Marketplace Lending Operators MeetUp panel discussion this Thursday, April 7th: “What Marketplace Lenders Need to Know Right Now.” Sign up here!
- PeerIQ will be in San Francisco next week for the LendIt conference on April 11th and 12th giving a talk on P2P Lending Securitization, and participating on the following panels:
- Securitization – How do we make it better?
- Valuation of Consumer Loans / Notes?
- Portfolio Analytics: Cross Platform Performance Comparison
- Bond Insurance Is Dead. Or Is It? (Bloomberg Brief, 4/1/16) Bond insurance survived the financial crisis and penetration rates are rising steadily
- Global Regulators Move Closer to Regulating Fintech (Reuters, 3/31/16) FSB agrees on new framework for categorizing components of fintech and assessing potential risks
- Fintech Regs Get Second Look at Treasury (CNBC, 3/31/16) Regulators look to strike a balance between risk and innovation
- MetLife and the Dodd-Frank Backlash (WSJ, 3/30/16) Judge rules in favor of MetLife on SIFI designation
- Digital Disruption: How FinTech is Forcing Banking to a Tipping Point (Citi Brief, March 2016) Citi offers a comprehensive report spanning payments, marketplace lending, Robo Advisors, blockchain, and the future of banking
- Shelia Bair Goes FinTech Route (CNBC, 4/1/16) FinTech industry start-ups lure former government officials
- Lending Club Said to Hire Guggenheim to Help Securitize Loans (Bloomberg, 3/30/16)
- Marketplace Lending on Path to Maturity – Panel (Global Capital, 3/29/16) The quality of securitizations are very high as compared to pre-2008
- Chai Print Points to Value (SCI, 3/31/16) It is a buyer’s market in MPL ABS
- Not All Marketplace Lenders Are Created Equal – The State of Fintech Lending (deBanked, 3/30/16) Significant differentiation in business models – on origination, funding, and customer experience – across marketplace lenders
- The Grapevine (AB Alert, 4/1/16) PeerIQ answers the question: “How much have spreads on marketplace loan deals widened in recent months?”
Tune in this Tuesday for the premier of Americas Greatest Makers where PeerIQ software engineer, Brendon Villalobos, competes to create the next greatest tech invention