Jefferies revisits Lending Club Deal, Marlette Completes Second ABS

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Another capital source you say? Online lenders are ready with an answer and this time it seems to be securitization.

Time and again we have had heard industry folks harp on about diversification of capital being the need of the hour. Well, that hour is here, it seems like.

Things are looking up for Lending Club with some much needed respite. Jefferies said that it will revive the lender’s stalled bonds albeit marketing it to a few chosen investors, Reuters reported.

The roughly $140 million bond was put on hold in May after the resignation of Lending Club’s CEO Renaud Laplanche who had overseen the $22 million loan sale to Jefferies with manipulated documentation.

Another happy clam in this pool is Marlette Funding which securitized its second personal loan bond sale and priced its top $149 million Single A notes rated by Kroll Rating Agency.

Some challenges remain to be resolved — Slow returns, rising defaults, jittery investors and ambiguous regulation are some headwinds online lenders have to tackle. But for now, any good news is welcome.

Last modified: April 20, 2019
Srividya KalyanaramanSrividya's work has appeared in publications like Money magazine, Advertising Age, FirstPost and The Economic Times. She has also dabbled in business intelligence solutions, and holds a Masters degree in Business and Economic Reporting from NYU.

Category: Marketplace Lending

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