SoFi clears debut rated consumer loan ABS

摘要

Social, finance found eager buyers for its debut rated bond issue backed by personal loans, the first such trade since troubles at rival Lending Club cast a shadow on the online loans sector. Demand for the US$380m securitisation of loans made to high-income earners with professional degrees far exceeded supply, two investors said. "It's been going great and was multiple times subscribed," said one investor who bought into the deal. "They have good investor outreach compared with other lending platforms. From our portfolio manager's perspective, this is different." SoFi took a hard-charging approach to getting the message out about the deal, including reaching out directly to some potential buyers via instant messaging. The San Francisco-based company also keeps skin in the game by retaining some lower-rung securities in the deal, a point that Kroll Bond Rating Agency said set it apart from its online lending peers.