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As two marketplace lending ABS deals hit the market in quick succession, a new survey has revealed that institutional investors are more excited than ever about the asset class -- although regulation could change that.
SoFi, the San Francisco student loan lender, brought its fifth deal on Tuesday, adding a triple-B tranche for the first time. And last week, Florida-based CircleBack Lending saw around $130m of its loans securitized by mid-tier investment bank Jefferies last week.
The SoFi deal is expected to perform well, and the Jefferies and CircleBack deal found strong demand in the aftermarket, according to market sources. The transactions show the increasing involvement of institutional investors in marketplace lending.
A recently published survey of 300 US institutional investors by law firm Richards Kibbe & Orbe and industry...