Lending Club closes “first-of-its-kind” marketplace lending securitization

By Daniel Lanyon on 1st December 2017

P2P/Marketplace Lending

The US marketplace lending giant has been increasingly looking to institutional investors in 2017.

Lending Club closes “first-of-its-kind” marketplace lending securitization

Lending Club has pooled a group of loans in new $25m ‘pass-through security’, for an institutional investor.

The Consumer Loan Underlying Bond (CLUB) Certificate transaction consists of whole loans structured as a pass-through security with the instrument trading in the over-the-counter market.

Scott Sanborn, CEO of Lending Club said: "This milestone is a perfect example of Lending Club's innovation to meet the needs of our customers on both sides of the platform," said "We're leveraging all of the capabilities we've developed to quickly react to the needs of both our borrowers and our diverse investor base."

Patrick Dunne, Lending Club's Chief Capital Officer, says the transaction is structured as a single fixed income security that, offers “the potential for greater liquidity.”

Lending Club said in a statement that is will “further deepen and broaden investor access in 2018” through a variety of new products and structures.

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