- Today’s main news: OnDeck prices $225M securitization. Prosper is looking for new whole loan contributors for securitizations. Funding Circle lends 123M GBP to businesses in March. Funding Circle SME considers new equity raise. Ant Financial to raise $9B.
- Today’s main analysis: Competition among lenders worth $27K to borrowers last week. The grad degrees that deliver more debt than income.
- Today’s thought-provoking articles: Anthony Noto talks about his first month as CEO of SoFi. Heard at LendIt Fintech 2018. A bad month for public equity markets. Prospa challenges Australia’s banks. How fintech makes credit cards, personal loans easier to get.
- OnDeck Capital prices $225M securitization. AT: “It’s good to see OnDeck getting back in the game. I also think 2018 is shaping up to be the year of securitizations, which had a good year last year. It could shape up to be better this year.”
- Prosper seeks new whole loan contributors for securitizations. AT: “As the big online lenders–like OnDeck, Prosper, and SoFi–continue to roll out securitizations, we could very well see new entrants in the alt lending securitization market in 2018.”
- Anthony Noto talks about leaving Twitter for SoFi.
- Heard at LendIt Fintech 2018. “When you leave things up to 50 states you are not letting 50 flowers bloom.”
- It was a bad month for public equity markets.
- Competition among lenders worth $27K to borrowers. “By calculating this spread, we hope to show consumers how much they stand to save by comparing rates during the lending shopping process.”
- The grad degrees that deliver more debt than income. AT: “This is very interesting. Optometrists pay the more of their income to student loans than dentists, lawyers, scientists, engineers, and nurses. Actually, more than anyone. However, veterinarians have the highest median loan balance as a percentage of annual income. This is a must-read for lenders that offer student loans for graduate study, and for specialist loans based on professions.”
- Autogravity expands vehicle finance options internationally.
- Finitive launches alt lending investment platform. AT: “This looks like a great platform for both institutional investors and alternative lenders looking for them.”
- NSR Invest secures growth financing with FinSight Ventures.
- Alchemy helps millennials with blockchain-based P2P lending.
- Quovo launches new products.
- MoneyLion expands MoneyLion Plus.
- DebtBench consolidates B2B loan marketplace.
- Intrinio to release API v2.
- OCC to publish position on fintech charter.
- AI and financial management.
- Financial tips for startups.
- Building a strong credit history without credit cards.
- Funding Circle lends 123M GBP to businesses in March. AT: “Congratulations.”
- Funding Circle SME considers new equity raise.
- MarketInvoice joins NatWest panel.
- Liberis raises 57.5M GBP.
- As good as it ap(peer)s.
- Is banking up for disruption.
- Responding to tech disruption in wholesale banking.
- Ezira is social media, P2P lending, and crypto rolled into one. AT: “This looks interesting.”
- United States
- On Deck Capital (ONDK) Prices $ 225 Million Securitization (Street Insider) Rated: AAA
- Prosper to keep PMIT shelf, but seeks new blood as loan agreement winds down (GlobalCapital) Rated:AAA
- Anthony Noto on leaving Twitter for SoFi, and what comes next (Axios) Rated: AAA
- Heard at LendIt Fintech 2018 (Crowdfund Insider) Rated: AAA
- In a Bad Month for Public Equity Markets, Local Isn’t Spared (Street Fight) Rated: AAA
- Competition Among Lenders Worth Over $ 27,000 to Borrowers Last Week (Lending Tree) Rated: AAA
- Which Graduate Degrees Deliver More Debt than Income? (Credible) Rated: AAA
- AUTOGRAVITY EXPANDS VEHICLE FINANCING OPTIONS TO INTERNATIONAL STUDENTS THROUGH A NEW PARTNERSHIP WITH WESTBON (Lendit) Rated: A
- FINITIVE LAUNCHES ALTERNATIVE LENDING INVESTMENT PLATFORM WITH $ 1.3 BILLION OF INITIAL TRANSACTION VOLUME (Lendit) Rated: A
- NSR Invest secures growth financing with FinSight Ventures (Lendit) Rated: A
- Alchemy Peer-to-Peer Lending Will Help Millennials Dominate the Future of Finance (TechBullion) Rated: A
- Quovo Launches New Products to Improve Lending Value Chain (Lendit) Rated: A
- MoneyLion Announces the Big Alternative to the Big Bank (Business Wire) Rated: A
- DebtBench Consolidates The Business-to-business Loan Marketplace Into One Place (Benzinga) Rated: A
- Intrinio to Release API v2, Making Financial Data Even More Accessible (Lendit) Rated: B
- OCC Gearing Up To Publish Position On FinTech Charter (PYMNTS) Rated: B
- AI and the next step in financial management tools (Venture Beat) Rated: B
- Funding Your Dream: Financial Tips for Startups (Axcess News) Rated: B
- Building a Strong Credit History Without Using Credit Cards (Analyst of Finance) Rated: B
- United Kingdom
- Funding Circle lends £123m to businesses in March (Bridging & Commercial) Rated: AAA
- Funding Circle SME fund considers new equity raise (Peer2Peer Finance) Rated: AAA
- MarketInvoice joins NatWest Capital Connections panel (Finextra) Rated: A
- Liberis raises £57.5M to offer finance for small businesses paid back via customer card transactions (TechCrunch) Rated: A
- As good as it ap(peer)s? (Metro) Rated: A
- Jack Ma’s Ant Financial to Raise $ 9 Billion, Become World’s Biggest Unicorn (Wall Street Journal) Rated: AAA
- X Financial Provides a Chinese Fintech Perspective at LendIt USA (Markets Insider) Rated: A
- Is the Banking System Up for Disruption? (GURUFocus) Rated: A
- RESPONDING TO TECHNOLOGY DISRUPTION IN WHOLESALE BANKING (International Banker) Rated: A
- Ezira – The distributed social media and business platform (AMBCrypto) Rated: A
- Online lender Prospa challenges Australia’s big banks (Financial Times) Rated: AAA
- Australia lags on digital banking revolution: Oracle survey (The Sydney Morning Herald) Rated: A
- P2P lending company Faircent.com launches its open API platform (ETRise) Rated: AAA
- Kae Capital infuses funds in P2P digital lending startup Loanzen (ENTracker) Rated: A
- How is Fintech Making Credit Cards and Personal Loans Easier to Get? (TechWorm), Rated: AAA
- Start-up crowdfunding: Window of opportunity (Arabian Business) Rated: A
On Deck Capital (ONDK) Prices $ 225 Million Securitization (Street Insider) Rated: AAA
OnDeck announced today that it has priced $225 million initial principal amount of Series 2018-1 Fixed Rate Asset-Backed Notes (the “Notes”) in a private securitization transaction. The Notes, which will be issued in four classes, were priced with a weighted average fixed interest rate of 3.75% per annum. It is expected that DBRS, Inc., in satisfaction of one of the closing conditions, will rate the Notes at closing. The anticipated DBRS rating for the Class A Notes would be the highest rating ever for a class of notes in an asset-backed securitization of small business loans in the online lending industry.
The Notes will be issued by OnDeck Asset Securitization Trust II LLC (the “Issuer”), a wholly-owned subsidiary of OnDeck. The Notes will be secured by and payable from a revolving pool of OnDeck small business loans. The Issuer will be the sole obligor of the Notes; the Notes will not be obligations of or guaranteed by OnDeck or any of its other subsidiaries. OnDeck will act as the servicer of the loans securing the Notes.
The net proceeds from the Notes offering will be used by the Issuer together with other available funds to optionally prepay in full a prior notes issuance (the “Old Notes”) that had a weighted average interest rate of 4.7% at December 31, 2017.
Prosper to keep PMIT shelf, but seeks new blood as loan agreement winds down (GlobalCapital) Rated:AAA
Prosper will continue to issue ABS from its long standing PMIT shelf, but is looking for new whole loan contributors for its securitizations as it eyes the end of a loan consortium agreement inked last February.
Prosper’s securitizations will retain the multi-seller deal format, in which whole loan investors contribute collateral to the securitizations, said three people speaking with GlobalCapital on the sidelines at the LendIt Fintech USA 2018 event in San Francisco.
Anthony Noto on leaving Twitter for SoFi, and what comes next (Axios) Rated: AAA
Former Twitter chief operating officer Anthony Noto just finished his first month on the job as CEO of SoFi, the “unicorn” financial services company whose former CEO was booted late last year after allegations of sexual misconduct.
Axios spoke to Noto about the new job, growth plans, recruitment and that long-rumored IPO. The quick read:
- He had always wanted to be a CEO, and felt he had accomplished what he set out to do at Twitter.
- He believes SoFi is a cultural reclamation project, but that the core business is strong.
- SoFi wants to launch a membership-type credit card.
- The firm has no plans to either IPO or fundraise in 2018.