Securitization

The pricing of student loans, and higher-ed degrees themselves, should have more to do with the proven earning power of a university’s graduates in the eyes of some innovators. Big data could play a huge role.

The bonds are being issued through Harley-Davidson Motorcycle Trust 2016-A in a five-tranche notes structure, according to the filing with the Securities and Exchange Commission on Tuesday. The notes are backed by a pool of loans with a principal balance of $450 million.

Middle market CLOs have never recovered the role that they played in lending to small and medium-sized companies before the financial crisis; that could change now business development companies and other alternative lenders are under pressure.

LendingClub, the online loan platform looking to restore investor confidence, is in talks with Citigroup to arrange more funding for the debts it arranges, according to a person with knowledge of the matter.

Specialized lender Oxford Finance is securitizing a $324 million notes package backed by first-lien senior loans it has originated for life sciences research firms and healthcare services companies.

GREEN STORM 2016 B.V., a €271.3M RMBS in The Netherlands, is the first-ever securitization of homes pooled together specifically for their energy-efficiency rating, according to Moody's.

U.S. banks are taking bigger risks in auto lending as they compete for market share in a sector that remains red-hot.

Government scrutiny of the for-profit education industry could intensify default risks on up to $1.88 billion of commercial mortgage bonds backed by properties occupied by Corinthian Colleges, the University of Phoenix, and DeVry,

Recent legislative proposals to make piecemeal changes to the government-sponsored enterprises could set broader GSE reform on the wrong path.

Wells Fargo & Co. agreed to pay a $70 million penalty in ending the bank's five-year fight to settle legal claims over foreclosure missteps after the 2008 credit crisis.

Freddie Mac’s newest form of mortgage reinsurance transfers the risk of credit losses on 15-year residential mortgages that it insures.

Hertz Corp. is marketing two as-yet unsized offerings of notes backed by its auto rental fleet, according to rating agency reports.

The Obama administration and an independent federal banking agency are advising the Supreme Court not to review a lower-court ruling that has roiled the marketplace lending sector and caused consternation throughout much of the consumer finance industry.

Federal Housing Finance Agency Director Mel Watt sounded alarm bells Tuesday about Home Loan Banks' reliance on short-term funding in the form of discount notes.

The due-diligence firms that vet loans before securitization are erring on the side of caution when assessing the risk to investors of liability from the new consumer mortgage disclosure rules.

A surge of bankruptcies and a trio of distressed exchanges so far in May show that speculative-grade corporate liquidity remains under pressure heading into the summer, according to Moody's.

In a report published Tuesday, Wells said that retailer loans held by collateralized loan obligations are performing as well, if not better, than most of other loans in CLO portfolios, outside of the oil and gas industries. In addition, only 8% of retail loans in CLOs are trading under $80.

The Synchrony Credit Card Master Note Trust is issuing a $650.6 million notes offering including $547 million in Class A and Class B notes to be issued with 27% and 20% credit enhancement, respectively. That mirrors, to the dollar, its previous private-label credit card securitization in March.

Before we write off marketplace lending, let's remember: we are still at the relative beginning of this journey. There will be some bumps in the road, as there are for new companies in any field. Innovation takes time and so does building a great company.