Marketplace lender Upstart is pursuing its 19th securitization of unsecured consumer loan originations through its pass-through trust featuring loans aggregated by Jefferies.
Upstart Pass-Through Trust, Series 2021-ST4 is limited to a single-tranche, Class A notes offering totaling $102.38 million. The bonds backed by the primarily non-prime unsecured receivables have preliminary ratings of BBB (low) from DBRS Morningstar and BBB- from Kroll Bond Rating Agency.
All of the loans are originated on the Upstart platform, underwritten by New Jersey-chartered Cross River Bank and Utah-chartered FinWise Bank.
As of Dec. 31, Upstart’s program loans have a weighted average borrower salary of $86,361 and a FICO score of 678. About 66.8% of the Upstart loans consist of borrowers with a college degree according to DBRS Morningstar.
While Upstart offers installment loans with 36-month, 60-month and 84-month repayment terms, the lender is not including any seven-year loans in the proposed pool.
DBRS Morningstar a weighted average default projection of 19.6% on the pool, as well as a net loss assumption of 18.62%.
