Peer-to-peer (P2P) lending is the latest business sector that has captured the attention of both the Internet economy (tech startups, disruption, transformation) and the old economy (Wall Street, flow of capital).
SoFi, a P2P student loan lender, has recently closed two securitizations that were heavily oversubscribed.
Lending Club, one of the pioneers of P2P lending, has filed to go public.
At the recent ABS East Conference dedicated to securitization held by IMN, a separate sub-conference focusing specifically on P2P was standing room only. According to attendees, a majority of the booths at the ABS conference were P2P businesses looking for capital. Mind you, all this interest on P2P securitizations is based off of only a handful of rated deals.
ABS East was not the only conference to address P2P, as the Lend Academy provides a list for those interested.
Everyone from Nasdaq to institutional investors are voicing their belief and support for the P2P model. Charles Moldow, a partner of Foundation Capital and an investor in a number of P2P business has some interesting takes in Tech Crunch on the P2P sector and how he sees its growth. Another interesting aspect of P2P businesses is the attraction that institutional investors have to the business model and how they have provided both debt and equity capital to P2P originators.
Banks, as everyone knows, continues to retreat from certain areas of traditional lending, shadow banking has stepped in providing capital. The application of the P2P model to all areas of finance has only started. If the marriage between securitization and P2P is successful, then this will become a fast growing segment of the economy.
SoFi, a P2P student loan lender, has recently closed two securitizations that were heavily oversubscribed.
Lending Club, one of the pioneers of P2P lending, has filed to go public.
At the recent ABS East Conference dedicated to securitization held by IMN, a separate sub-conference focusing specifically on P2P was standing room only. According to attendees, a majority of the booths at the ABS conference were P2P businesses looking for capital. Mind you, all this interest on P2P securitizations is based off of only a handful of rated deals.
ABS East was not the only conference to address P2P, as the Lend Academy provides a list for those interested.
Everyone from Nasdaq to institutional investors are voicing their belief and support for the P2P model. Charles Moldow, a partner of Foundation Capital and an investor in a number of P2P business has some interesting takes in Tech Crunch on the P2P sector and how he sees its growth. Another interesting aspect of P2P businesses is the attraction that institutional investors have to the business model and how they have provided both debt and equity capital to P2P originators.
Banks, as everyone knows, continues to retreat from certain areas of traditional lending, shadow banking has stepped in providing capital. The application of the P2P model to all areas of finance has only started. If the marriage between securitization and P2P is successful, then this will become a fast growing segment of the economy.
No comments:
Post a Comment