SoFi securitisations hit record high in Q1

By Daniel Lanyon on Tuesday 3 April 2018

Editor's PickAlternative Lending

The first quarter of 2018 saw the US-based lending platform hit $2.6bn in ABS notes.

Fintech lender SoFi completed $2.6bn in loan securitisations in the first three months of 2018, representing both a 35 per cent increase over the prior-year period and its largest-ever quarterly ABS issuance volume to date, the firm has said in a statement. 

In the first quarter of 2018, SoFi completed a total of three securitisation transactions: two student loan ABS offerings ($960m SOFI 2018-A Notes and $869m SOFI 2018-B Notes) and one consumer loan ABS offering ($774m SCLP 2018-1 Notes). The SoFi 2018-B Notes marked the first time SoFi included medical residency loans as a part of the collateral.

SoFi is still a top-ten ABS sponsor, ranking seventh among all sponsors, the firms says (as of March 31, 2018) behind Sprint, Ford, General Motors, Ally Financial, Santander and Citibank.

The firms says during the quarter its securitizations had 74 unique investors in total. Nearly 20 per cent (14 out of 74) of these were were new investors to the program.

Ashish Jain, SVP of Capital Markets at SoFi, said: "Volatility returned to the credit markets this quarter, but investors continued to show a strong appetite for our securitizations, which allowed us to compete several large transactions. We are especially pleased that our investor base has continued to expand as more institutions recognize the strength of SoFi as a top ABS issuer of prime consumer credit."

SoFi's new student loan ABS issues were aided by favorable credit developments from the major rating agencies last year.  Moody's reduced their net loss assumptions from 5 per cent to 2 per cent, and S&P from 4 per cent to 2.25 per cent, reflecting the continued strong performance of SoFI's student loans and their consistent credit quality.

In Q1 2018, SoFi originated $3.6bn in loans across its personal loan, student loan and mortgage products, a 27 per cent increase compared to the first quarter of 2017.

The company’s total issuance in 2017 rose to $6.9bn, up from $4.2bn in 2016, with the 2017 total including six Student Loan ReFi and six Consumer Loan transactions.


Sign up for our newsletters

Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.

AltFi's new weekly US newsletter breaking down the ins and outs of America's burgeoning fintech sector. Delivered Monday 9am EST/ 6am PST.