The US economy generated a seasonally adjusted 138 K jobs last month (vs. expectation of 185K) bringing the jobless rate to 4.2% and another step closer to full employment. As inflation risks emerge, the Fed is widely expected to increase rates another 25 bps at the upcoming FOMC meeting on June 14th.

On the regulatory front, the US House will vote on a bill sponsored by Jeb Hensarling (R-TX) to reform and repeal portions of the landmark Dodd-Frank financial reform bill.  In our conversations with bank executives, both at the community bank and large money center level, we find, surprisingly, mixed interest in rolling back Volcker rule, risk retention, and various consumer protection regulations. Banks have largely adapted their business lines to the new regulatory framework. However, we do find consistently strong interest across the banking sector for a paring back and simplification of capital and liquidity rules.

On the securitization front, student lending originator CommonBond priced its $232 Mn private student loan ABS. Goldman Sachs was the structuring lead, and co-leads include Barclays and Citi. Also, AB Alert reports that Lending Club is preparing a multi-seller deal which includes collateral from multiple originators including potentially loans from Lending Club’s own balance sheet. As PeerIQ noted in the summer of last year, we believe marketplace lenders that can offer whole loan investors a reliable path to liquidity and low-cost permanent financing can generate a competitive advantage.

Lending Club and Prosper recently updated their public loan performance data on most recent vintages. Accordingly, PeerIQ is pleased to present the PeerIQ Loan Performance Monitor. The monitor tracks interest rates, delinquency, and charge-off rates for both platforms across vintages and grades.

We are also pleased to introduce a new feature to the PeerIQ Analytics platform. Subscribers can now easily generate custom benchmarks to monitor whether their own loan portfolios or leading or lagging their comps. Feel free to contact us to learn more.

Industry Update:
  • Lending Club Blueprint Emerging (AB Alert, 6/2/17) Lending Club reveals plans to price a subprime loan securitization in which it would contribute collateral alongside other whole loan investors.
Lighter Fare: