Weekly Online Lending Snapshot – February 09, 2018
Last month, we talked about the brief return of volatility to the U.S. equity markets, as we spent the month highlighting a few unsustainable macro trends that carried over into the new year—record highs in equities and global consumer debt levels, and record low volatility. In the first eight days of February, we’ve seen the Dow Jones Industrial and S&P 500 dramatically pull back from all-time highs and the Cboe VIX Volatility Index, which spiked yet again, is now hovering at more than twice its historical lows. Our favorite headlines include: Volatility Returns – Exploring The Reasons And What Happens Next, Former Target manager aims to bounce back with $600,000 bet against volatility, and Ignore the stock market rollercoaster, the sell-off in bonds is what matters.
In other news, seven U.S. states have agreed to simplify the way fintech companies can apply for money service business licenses to make it easier for them to provide services nationwide. It was reported that the new head of the Consumer Financial Protection Bureau has stalled their investigation into the Equifax, Inc. data breach. Fiserv reportedly sold 55% of its Lending Solutions business to Warburg Pincus. Behalf, a lender to small and medium-sized businesses, announced it secured $150 million in debt financing from a fund managed by Soros Fund Management LLC and Viola Credit. Both firms also made an equity investment in Behalf. China-based online lender Senmiao Technology announced plans to raise $14 million by offering 3.3 million shares at a price range of $4.00 to $4.50 in a U.S. IPO.
Note that this report is updated as of Thursday’s market close to ensure we can get it to you before the weekend.