PeerIQ has released its monthly marketplace lending update for October; focus of the report is on the 2017 forecast for marketplace lending securitizations; PeerIQ forecasts 47% year-over-year growth ($11.3 billion) in new ABS issuance with 52% growth in new originations for its base case estimate; sees high demand continuing for securitized products however institutional investors will likely be more interested in shorter duration loans to manage interest rate risk as US rates are expected to rise; PeerIQ reports continued support from rating agencies with high ratings; expects leading securitization issuers in 2017 to be SoFi, Avant and Marlette. Source
Federico Baradello founded Finalis, the investment banking-as-a-service platform for dealmakers, after working in a sector he knew was long overdue for an upgrade.
A wide range of loan options for small business funding are available; Lend Academy provides an overview of the market's credit products for small businesses in their article; loans from the Small Business Administration and large lenders have traditionally been the main focus for many borrowers however online marketplace lenders and innovative credit products such as invoice financing have greatly evolved the options for credit funding in the market. Source
Fitch Ratings has upgraded its outlook for Canadian banks from negative to stable; cites solid risk management, increasing profits and better than expected capital positioning as factors for the upgrade; says recent regulatory changes, slow GDP growth, high household debt and decreasing home prices are still concerns for 2017. Source
While many got swept up in the early days of the DeFi asset hype machine, others who saw its true potential began quietly plotting the path the space would need to get there.
A new study conducted by the Center for Financial Services Innovation (CFSI) and Core Innovation Capital found that the underserved banking customer paid $141 billion in fees while at the same time accounting for $1.6 trillion in economic activity; the underserved or underbanked are defined as the 67 million who do not use a bank account but use prepaid cards and other alternative finance options to handle their money; according to CFSI president and CEO Jennifer Tescher, the biggest driver behind the fees are auto insurance and subprime installment lending. Source
According to a report from Reuters, more large businesses in China are increasing their internal mergers and acquisitions teams and relying less on investment banks for intermediary deal support; Fosun, Alibaba Group Holding Ltd. and Tencent Holdings Ltd. are examples, with all three reportedly expanding their in-house mergers and acquisitions teams. Source
In the space of a week, Petal and newly-formed spin-off, Prism Data have made two significant announcements, super charging open banking.
UK listed marketplace lending fund, P2P Global Investments, has reported struggling performance in 2016; monthly return in September was 0.23% for a year-to-date return of 3.41%; target annual return is 6% to 8%; peripheral factors such as debt facilities and currency hedges have affected the return; the fund is now selling at a discount of 19.8%; has been steadily buying back shares to help improve the NAV and also using securitization to reduce debt costs; loan defaults and delinquencies have been higher as a result of longer maturities, however the primary factor affecting the return is the broad global diversification of the loans resulting in losses from currency hedging. Source
In a report by Moody's Investor Services, the rating agency has downgraded the global asset management industry to negative; factors for the downgrade are focused on active management performance, global regulation and increasing costs; a McKinsey report published last month pointed to the new fiduciary rule, set to be enacted in April 2017, as an industry altering step as advisers will be forced not to consider their self interests with high commissions when servicing their clients; capital has continued to flow from actively managed funds to ETFs with costs being significantly lower. Source