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LendingClub offers improved borrower credit metrics in new $240.2M ABS pool

LendingClub is packing in a few more of its higher credit-tier borrowers in its opening securitization for 2020.

According to presale reports, the $256.4 million pool of unsecured online consumer loans for Consumer Loan Underlying Bond (CLUB) Credit Trust 2020-P1 has a 38.5% concentration of borrowers from its highest internal credit tier of ‘A’ borrowers.

That is a level “notably higher” than previous LendingClub asset-backed issues, in which ‘A’ tier borrowers were never greater than 31.3% of any of the 11 prior issues under the CLUB shelf, according to Moody’s Investors Service.

Squeezing more higher-tiered borrowers into the pool is reflected in the weighted average FICO of 713, higher than previous LendingClub deals from 2017-2019 that ranged from 701 to 712.

The CLUB Credit Trust 2020-P1 deal includes three note classes totaling $240.2 million, including $166.6 million in Class A notes with preliminary A3 ratings from Moody’s and A+ from Kroll Bond Rating Agency.

A $29 million Class B tranche has early ratings of Baa3 from Moody’s and A from Kroll, while a $44.6 million Class C offering is unrated by Moody’s but carries a BB rating from Kroll.

The Class A notes benefit from 35.53% credit enhancement, including subordination an initial overcollateralization of 6.33% that builds to 12.8% as the deal amortizes.

All of the 15,978 loans in the pool, which have an average size of $16,049 and a weighted average collateral APR of 11.22%, are issued through partner bank WebBank.

About 56% of the loans were issued for debt consolidation purposes.

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