As an up-and-coming asset class for securitization, marketplace lending is attracting as much skepticism as it is hype.

Panelists and attendees over the course of three days at the ABS Vegas 2016 conference conveyed varying levels of doubt about at the prospects for securities backed by consumer and small-business loans originated through online lending platforms like Lending Club, Prosper and Funding Circle. Some dismissed the diminutive size of the market, which is a small fraction of the overall consumer credit market, as well as the underlying risk of investing in the nascent ABS market of bundling unsecured consumer loans.

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