At MonJa, we strive to support industry watchers and investors further their understanding of the marketplace lending sector. Since early 2016, several financial enterprises have released their investment outlooks on marketplace lending. Here are some general trends to be cognizant of:
– Moody Outlook: Marketplace Lending Platforms Will Continue to Evolve, Expand Loan Types – Would credit quality of ABS transactions weaken? How would investors assess risk as originators, such as SOFI, expand to a broader borrower base? Moody’s announcement of reviewing Class C Notes is a sign that investors should not only monitor delinquencies but also the underlying underwriting characteristics of these loans.
–K&L Gates 10 Things to Know before Catching Securitization Wave Here’s a brief overview of structural issues and regulations that investors should pay attention to before embarking on securitization of marketplace loans.
–Autonomous Research Digital Lending Report – Aggregating all forms of marketplace lenders, Autonomous reports that there is a $2 trillion addressable market for US and Europe. Under their predicted growth, digital lending could amount to $100 billion in loans by 2020.
–Freddie Mac’s Investment Outlook Office of the Chief Economist takes note of marketplace lending and begs the question if marketplace lending will be the “next Uber or another flash in the pan.”
–FinTech Partners’ July 2016 Alternative Lending Market Analysis– Broad coverage of transactions specifically in the alternative lending space.
–US Dept. of the Treasury: Opportunities and Challenges in Online Marketplace Lending– An overview of the RFI’s submitted by industry participants last summer and policy recommendations to encourage the safe growth of marketplace lending.
–PwC’s From Idea to Innovative Market Leader: A Roadmap for Sustainable Marketplace Lending Growth– A guide to help current and developing marketplace lenders create strategies throughout the four-stage roadmap.
–Milken Institute: The Non-Bank Finance Landscape– An in-depth landscape of various marketplace lenders that explains different business models in the online lending ecosystem.
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