By Daniel Lanyon on Tuesday 11 July 2017
The increasing size of quarterly issuance alongside involvement from a larger group of ratings agencies suggest institutions are more and more bullish
The increasing size of quarterly issuance alongside involvement from a larger group of ratings agencies suggests institutions are more and more bullish on the asset class.
The second quarter of 2017 saw issuance of P2P and marketplace lending securitization reach $3bn worth of deals, representing a 76 per cent year-on-year growth rate, according to Peer IQ.
The period saw nine marketplace lending securitizations meaning to date cumulative issuance has reached $21.9bn across 92 deals.
Multi-seller club deals and self-sponsored deals emerged as a fresh trend at several platforms.
Alongside this trend, dealer and rating agency participation is gaining strong momentum with all deals being rated in the quarter.
Fitch rated its first Consumer MPL - Prosper’s PMIT 2017-1- indicating broadening acceptance across ratings agencies, Peer IQ said. Goldman Sachs, Morgan Stanley, and Deutsche Bank lead over 47 per cent of MPL ABS transaction volume.
New issuance spreads also continued to tighten and flatten pointing to a 'credit friendly environment for securitization', Peer IQ added.