US MPL securitisations total $3bn in first quarter
SEVEN marketplace lending (MPL) securitisations took place in the US in the first quarter of 2017, with a total value of $3bn (£2.4bn), according to new research.
This is up from $2.4bn in the fourth quarter of 2016. Alternative lending research firm PeerIQ found that total issuance to date now stands at $18bn, equating to 80 US MPL deals since September 2013.
The sector is moving towards rated transactions at larger deal sizes, including record-sized consumer deals from SoFi, the New York-based firm said.
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Goldman Sachs, Morgan Stanley and Deutsche Bank arranged the most deals in the sector during the first three months of the year, with Goldman Sachs maintaining its top rank in the league table.
“As we noted in the fourth quarter of 2016, deal interest and involvement remains high despite mixed headlines, regulatory uncertainty, and firm-specific considerations throughout 2016,” said PeerIQ.
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“This positive trend continued in the first quarter of 2017, with nine of the top 10 lead managers increasing their involvement in MPL issuances. In addition, the industry saw a new participant, BAML, lead the two SoFi student deals this quarter.”
Last year’s Lending Club corporate governance scandal dented investor confidence in the sector in the US, where the market is dominated by institutional money.