LendingClub’s big deal, Blackstone’s debut CRE-CLO, PACE about-face : Top stories of 2017
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Marketplace lenders bring securitization in-house
By sponsoring their own deals these matchmaking platforms are providing liquidity to multiple loan investors. They can also ensure that bond offerings are regular and uniform.
(Full story here.)
TOP 10 of 2017: CRE-CLOs move into the mainstream
Commercial real estate collateralized loan obligations appeal to investors now because they issue short-term, floating-rate notes; several nonbanks, including the Blackstone Group, are using them to finance bridge lending.
(Full story here.)
PACE industry embraces consumer protection
Facing increasing concerns about consumer protections, the Property Assessed Clean Energy industry is embracing the kinds of underwriting and disclosure standards more commonly associated with residential mortgages.
(Full story here.)
Tax reform could raise funding costs for lessors
Limiting the deductibility of interest to a percentage of a taxpayer's income will make securitization uneconomical for auto and equipment rental companies, the Structured Finance Industry Group says.
(Full story here.)
Carving up CMBS loans, but not risk
The trend of putting ever-smaller pieces of the same commercial mortgages into multiple transactions means investors can end up with more exposure to a single property than they realize.
(Full story here.)
FFELP back in investors’ good graces
Navient and Nelnet avoided downgrades on some $18 billion of bonds with the help of recent technological innovations; this helped restore investor confidence, allowing them to resume issuance.
(Full story here .)
Global Jet's inaugural lease ABS grounded
In a rare example of a rating agency calling out a competitor, Fitch Ratings published an unsolicited report on the deal, which was rated by Kroll Bond Rating Agency; this caused some investors to take a closer look.
(Full story here .)
Whole Biz ABS moves beyond restaurant chains
What helped to grow the market in 2017, even as foot traffic declined and same-store sales growth slowed across the quick serve dining industry, were structural innovations that widened the investor base.
(Full story here.)
CLO managers come to grips with risk retention
Many raised large amounts of capital to put to work in the equity, or riskiest slices of their deals, allowing them to resume issuing new deals just as new loan issuance was taking off.
(Full story here.)
Santander dives back into subprime auto
The Dallas consumer lender plans to boost originations again after retooling and taking stock, even as other lender scale back in the face of rising defaults and delinquencies.
(Full story here.)
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Top 10 of 2017: PACE industry embraces consumer protection
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TOP 10 of 2017: CRE-CLOs move into the mainstream
Commercial real estate collateralized loan obligations appeal to investors now because they issue short-term, floating-rate notes; several nonbanks are using them to finance bridge lending.
Pay attention: LendingClub’s first securitization is a big deal
Sponsoring securitizations of the loans funded on its platform will give LendingClub more control over its reputation in the market and make it less beholden to direct loan buyers.
LendingClub, Competitors Face Risks from Lawsuits: Moody’s
A proposed class-action lawsuit against LendingClub threatens investors in bonds backed by its loans and similar debt even if the plaintiff loses, according to Moody's Investors Service.