Cross River Intelligence Archives

US GDP growth clocked in at an annual growth rate of 2.9% and the probability of a December rate hike is increased to over 70%. A PIMCO analysis this week illustrates that rising inflation expectations and negative real rates continue to pressure bank profitability, consistent with PeerIQ’s bank ROE analysis. LendingClub appears to be pivoting to growth. LendingClub CEO, Scott Sanbor ...

Bank earnings came in stronger than expected this quarter, driven by improved fixed income trading revenues and lower legal fees. Delinquency rates remain at decade-lows and credit quality is high, although a re-normalization of credit performance to historical levels is expected going forward. ROEs for major banks remain mired in the 7 to 9% range—well-below pre-crisis mid-teens targets du ...

Bloomberg by Matt Scully and Lily Katz (October 17, 2016) LendingClub down 6.9% after falling as much as 9.9%, the most intraday since Aug. 9; co. said late Friday it’s raising interest rates and tightening credit standards amid higher delinquencies. PEERIQ (CEO Ram Ahluwalia) Recent loan deterioration likely to have “significant” negative valu ...

The CFPB ruling and Marcus platform dominated headlines this past week. The CFPB was ruled unconstitutional by the United States Court of Appeals for the District of Columbia Circuit in a landmark decision on October 11th, but rejected the idea of shutting down the agency. The appellate court focused on its unusual independence in the Executive Branch, and the use of retroactive enforcement act ...

Last Thursday, PeerIQ CEO Ram Ahluwalia spoke at Bloomberg BNA’s Marketplace Lending: Regulatory Perspectives from Washington and Industry, where he discussed securitization as a key cornerstone of marketplace lenders' funding strategy and projected that it will continue to grow. Indeed, the first week of Q4 was marked by an impressive active new issuance market for MPL ABS.  We ha ...

PeerIQ is pleased to release the 3Q 2016 tracker. Here are some highlights: Marketplace lending securitization remains a bright spot in the ABS market. Total issuance topped $2.4 billion this quarter—a record—and is up 41.1% from Q2, with cumulative issuance now totaling $12.7 billion. YTD issuance of the sector stands at $5.4 billion as compared to $3.0 b ...

Several marketplace lending ABS deals are coming to market amidst favorable market conditions and impending risk retention rules. P2P Global Investments, a UK UCIT investing in marketplace lending loans, sold £114 M ($167.36 MM) of rated notes backed by Zopa loans. The senior bond of the deal—Marketplace Originated Consumer Assets (MOCA 2016-1)—was rated Aa3/AA by Moody&rsq ...