We are pleased to release PeerIQ’s latest securitization tracker. Some highlights:

  • This quarter we see quarterly issuance of $3.0 Bn, representing 76% growth over 2Q2016.  To date, cumulative issuance equals $21.9 Bn across 92 deals.
  • Multi-seller club deals and self-sponsored deals have emerged at several leading platforms.  All deals were rated in this quarter, including record-sized consumer deals from SoFi, large multi-seller deals from Marlette and Prosper, and the first self-sponsored, near-prime deals from Lending Club and Upstart.
  • Dealer and rating agency participation continues to intensify. Fitch rated its first Consumer MPL, Prosper’s PMIT 2017-1, indicating broadening acceptance across ratings agencies. Goldman Sachs, Morgan Stanley, and Deutsche Bank lead over 47% of MPL ABS transaction volume. Noteworthy is the rising presence of BNP Paribas, which co-managed CLUB 2017-NP1. DBRS leads the rating agency league table, and Kroll dominates the unsecured consumer sub-segment.
  • New issuance spreads continued to tighten and flatten—a credit friendly environment for securitization.  In 2Q2017, we saw spreads tighten in riskier tranches of consumer ABS, indicating strong investor appetite for MPL ABS paper in the market.
  • Delinquency rates have continued to increase across in several verticals—such as subprime auto, student, and personal loans—due to exposure to riskier borrowers, a re-leveraging of consumer balance sheets, “loan stacking,” and shifting payment priority trends.
  • Initial pricing is near record tight levels. Lending Club’s inaugural deal priced at Libor + 110, second only to Marlette’s MFT 2017-1 (L+100) on the Class A bond. Overall, spreads have tightened with greater investor acceptance in an overall “risk on” environment.

The full report can be access directly here.

PeerIQ in the News:

  • PeerIQ was named to the 2017 Fintech 250, Highlighting Advancements in Financial Technology.
Industry Update: 
  • Goldman Sachs To Launch Mobile App For Consumers (PYMNTS, 7/7/17) Goldman Sachs is preparing to create a mobile product for retail banking customers, which would likely include services like its new personal loan platform Marcus, high-yield savings accounts, and a forthcoming robo-advisor platform.
  • Inflation Amnesia Threatens the Fed (WSJ, 6/30/17) Low inflation numbers (up 1.4%,  the slimmest gain since late 2015) and corresponding low price expectations create a difficult challenge for The Federal Reserve.

Lighter Fare: