US marketplace lender Prosper issues new securitization backed by George Soros

By Daniel Lanyon on Tuesday 16 May 2017

Alternative Lending

The Prosper Issuance Trust has been rated favourably by the Kroll Bond Rating Agency.

US marketplace lender Prosper is prepping a $450.5m consumer loan ABS transaction that is expected to close on May 24, 2017.

Prosper announced it had agreed a $5bn programme of securitizations backed by a consortium of investors including credit Suisse and George Soros’  Soros Fund Management LLC. 


The Kroll Bond Rating Agency (KBRA) has assigned preliminary ratings to three classes of notes issued by Prosper Marketplace Lending Issuance Trust 2017-1 (“PMIT 2017-1”).

Founded in 2005, Prosper operates an online marketplace lending platform where personal instalment loans are offered to prime and near prime customers. The loans in PMIT 2017-1 were all underwritten as Standard Product Loans under the WebBank and Prosper Credit Guidelines.

The transaction represents the sixth securitization collateralized by unsecured consumer loans originated through the online marketplace lending platform operated by Prosper.

The transaction has initial credit enhancement levels of 43.9 per cent for the Class A Notes, 31.05 per cent for the Class B Notes and 10.40 per cent for the Class C Notes. 

Credit enhancement consists of excess spread, overcollateralization, subordination (in the case of the Class A and Class B Notes) and a reserve account funded at closing.

Source: Kroll

Prosper is among the latest alternative lenders to sign up with analytics firm AltFi Data, which it did back in March, thus opening itself up to third-party scrutiny of its loan data.

AltFi Data’s returns methodology gives Prosper a net return of 48.8 per cent over 5 years (up to 28 February 2017), equivalent to an annualised compound rate of 8.3 per cent. 

Source: AltFi Data

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